The porter bag stopped its bullish rally and fell this monday with the instrumentation of the rate at 97% per year and the official decision of a greater intervention in the exchange market, which seek to contain inflation, while I await signals from the IMF before whom goals of a current agreement are renegotiated.
BYMA’s S&P Merval Stock Index lost 0.3%, to 320,582.83 points as short profit taking after gaining 8.2% last week and marking a record high in pesos of 322,280.82 units. However, the weakness was cut at the end of the wheel.
In the Buenos Aires square, the casualties of the papers that make up the leading panel were led by Transportadora Gas del Sur (-3%); Galicia Financial Group (-1.9%); BYMA (-1.4%); Edenor (-1.1%); and Telecom Argentina (-0.9%).
On the contrary, with positive numbers they closed BBVA Argentina (2.7%); Cresud (2.6%); Transporter Gas del (2.5%); Securities Financial Group (2%); and Loma Negra (1.1%).
On Wall Street, for its part, the shares of Argentine firms operated with mixed results: the increases were led by Globant (3.5%); Ternium (1.9%); America Corporation (1.5%); Free Market (1.3%); and Cresud (1.2%).
The falls, meanwhile, were recorded by Transportadora Gas del Sur (-3.6%); Edenor (-2.1%); Pampa Energía (-2%); YPF (-2%); and Banco Supervielle (-1.7%).
The Government unveiled on Sunday a package of measures that seek to contain high inflation and sustain the value of the official dollar, with a rise in the reference interest rate, while few net reserves are lost.
That’s why. operators closely followed the action of the Central Bank (BCRA) before the daily rise of the official dollar (“crawling-peg”), as a measure to help lower the strong inflation (CPI) that reached 8.4% in April.
“We hope that (the CPI) will begin to stabilize at these values of 8% or 9% per month because economic activity slows down (…) This implies that inflation will end above 130% this year with a fairly severe recession”said economist Fausto Spotorno.
Economy sources said that the BCRA “Intervention in the exchange market will increase and it will manage the rhythm of the ‘crawl’ (daily devaluation)”, as well as an agreement for an advance of resources by the IMF is accelerated. The package also includes fiscal relief and consumption boost measures.
The idea of a rate hike is intended to stop the transfer of funds to the dollar, placing the current performance of monetary policy as the highest in just over two decades. The 97% nominal annual (TNA) is equivalent to 154.3% effective annual (TEA) and 8.1% monthly.
The presidential elections to be held in October create a complex climate for investors amid growing political tensions between the ruling party and the opposition.
The BCRA coffers managed to add $60 million, in the midst of full force of a special exchange rate for agro-exporters of 300 pesos per dollar, a plan that managed to liquidate some 2,550 million dollars since its implementation in April.
The peso in the alternative regions also traded lower despite strong restrictions and official operations with bonds to decompress the market, up to levels of 444.6 units on the “CCL” stock market and 438 on the so-called “MEP dollar”.
For its part, the blue dollar climbed $9 to $483, in sign of the distrust that prevails in the financial scene and the complex economic and political environment. In April, this market hit its record nominal top of $497 for sell.
“The measures announced on Sunday) sound like little and the market interprets it that way. As long as the monetary issue continues and the fiscal deficit is not attacked, inflation will be difficult to tame”said a bank agent.
Bonds and country risk
In the fixed income segment, sovereign dollar bonds fell 0.9% on average. For their part, CER-adjusted securities in pesos ended practically unchanged.
In this frame, the country risk advanced slightly by 0.1% to settle at 2,587 basis points.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
