With significant volume, bonds in dollars operate with the majority of losses; ADRs lose up to 4.5%

With significant volume, bonds in dollars operate with the majority of losses;  ADRs lose up to 4.5%

While the market keeps its eye on the financial exchange rate, the Hard currency sovereigns were mostly in negative territory, with declines led by Global 2038 (-2.8%); the Bonar 2038 (-1.1%); and Global 2035 (-1%). On the contrary, they operated with increases the Global 2046 (+2.6%); and Bonar 2029 (+0.7%).

Among operators, the volume traded in the fixed income segment was striking. “Interventions are intensifying to continue keeping regulated financial dollars calmer, but volume higher than usual,” commented a market operator to Ambit.

In this context, the Argentine country risk remained almost stable at 2,555 points, the lowest level in more than two weeks.

The market remains attentive to news regarding a eventual further relaxation of goals and faster disbursements of the agreement with the IMF, so it is lobbying for the support of key members of the body such as the United States and Brazil, government officials said.

“At the same time, negotiations with the IMF continue to recalibrate the (current) agreement and eventually achieve advancement in the disbursement schedule for the second semester while continuing to finance imports from China through the ‘swap’ between central banks”Delphos Investment said.

Along with speculative rearrangements of portfolios, Starting this week, the government restricted operations of bonds in local currency with settlement in dollars to decompress exchange rate pressures.

The Federal Reserve raised rates by a quarter of a percentage point on Wednesday, signaling it may pause to give time to assess the consequences of recent bank failures, wait for the resolution of a political standoff over the US debt limit and monitor the course of inflation.

S&P Merval and ADRs

Faced with profit taking, the leading index BYMA’s S&P Merval fell 1% to 285,983.2 points, after down almost 3.4% in the two previous rounds.

The expectation is set forward on how it will influence the capital market locally and in the dynamics of Argentine assets listed abroad this rate adjustment in the northern country, which was a quarter of a percentage point (0.25%) and brought it to the range of between 5% and 5.25 %, the highest level in the last 16 years. It happens that these movements usually generate a flight to quality process, which implies a flow of capital towards US Treasury bonds and an outflow of riskier assets.

The papers that drop the most are those of BBVA bank (-3.5%), Banco Macro (-2.8%) and Supervielle (-2.2%). Meanwhile, the shares that rise the most are those of Cresud (+4.7%) and Aluar (+1.5%).

For their part, the Papers of Argentine companies listed on Wall Street show falls of up to 4.5%. The one who loses the most is Grupo Financiero Galicia, followed by BBVA (-3.3%), Edenor (-3%) and Banco Macro (-2.97%). The only one operating on the rise is Loma Negra (+0.2%).

Source: Ambito

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