“The Buenos Aires stock market continues its streak and on the upward path ahead of the elections as fervent interest in equities remains“said Fernando Staropoli, account executive at Rava Bursatil.
Stock market firmness originates in the midst of a price freeze in mass consumer products, which is rejected by companies. In the last hours, the United States Chamber of Commerce in Argentina and the Christian Association of Business Leaders publicly expressed their discomfort.
Analysts are carefully watching the political march since, if the results of the primaries are repeated, the ruling party would lose the majority in Congress, with two years ahead of President Alberto Fernández’s administration.
Country risk and bonds
On Monday, the Argentine Country Risk measured by the JP.Morgan bank on Monday recorded its highest historical level since the debt swap with private companies (September 2020), when it touched 1,683 basis points, although on the closing it fell 0 , 3% to 1,667 basis points.
This change in trend from the fact that sovereign bonds in dollars began to improve 0.4% on average, after operating down for most of a reduced session.
“In bonds there is another issue, which is that it is not yet clear if Argentina could return to the capital market, beyond a change of government. And here is the main doubt, given the possibility that we will have a new event of credit, which does not necessarily have to be a default, but a restructuring or something else, “said Pedro Siaba Serrate, from Portfolio Personal Inversiones.
“As much as the context changes and is favorable, this weighs on the titles,” he said.
The indicator prepared by the JP.Morgan bank on Friday pierced its previous ceiling of 1,669 points, reached at the end of last March, climbing to 1,672 points.
On the other hand, the dollar linked debt in pesos was offered before rumors of the reopening of T2V2 and TV23 in the tender this Wednesday (which was confirmed at the close of the session): it fell by 0.4% on average, except for the T2V1 which rose 0.1%.
Finally, there was also a sale in the peso curve with CER adjustment (this Wednesday there will be a reopening of T2X2 and TX23), especially in the middle (TX26 -0.4%) and long (DICP, PARP, -0 , 3 on average).
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