The Buenos Aires stock market begins to drop this Monday, May 15 for profit taking at a time when the market is showing doubts about the future of the economy, one day after the announcement of a package of measures to contain inflation.
The S&P Merval fell 1.85% to 315,563.63 points, after gaining 2.63% on Friday and marking a record high of 322,280.82 last week. “The Merval accumulates a gain close to 60% so far this year and 8% only in the last week,” said Mauro Natalucci from Rava Bursátil.
“For its part, the measurement in US currency indicates that the Merval in dollars does not seem to have enough strength to exceed US$700 – at least in the short term -, a value that has provided a kind of barrier throughout the year; while it is true that it managed to hit $720 in mid-January,” he added.
Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina
Inflation in April, which reached 8.4% per month, and the scarce reserves of the central bank (BCRA) are hot topics in the market, which awaits definitions on the new guidelines.
“There is not a single relevant measure. A compilation of irrelevant announcements and promises quite similar to the irrelevant announcements and measures of the last year”said economist Luciano Cohan.
“The (high) inflation in April put a new dilemma in the exchange market. If the BCRA accelerates the devaluation, it will be adding more gasoline to the fire. If it delays the exchange rate to use it as an anchor, it will sell reserves increasingly cheaper , where the net is already more than $1 billion negative,” said Roberto Geretto of Fundcorp.
In this context, the Argentine papers listed on Wall Street operate with the majority of falls of up to 4.5% led by Pampa Energía, followed by YPF (-3.8%) and Transportadora Gas del Sur (-2.6% ). In the opposite direction, Globant SA (4%), Mercado Libre (1.9%) and Ternium (1.1%) advanced.
Bonds and country risk
In the fixed income segment, sovereign bonds in dollars operate unevenly. On this day, the sharp drop in Global 2029 by more than 12% and the rise in Bonar 2029 up to 2.4% stand out. Thus, the country risk falls 1% to 2,611 points.
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