The porteña stock market rose this wednesday may 17 for taking cover in the face of high inflation, one day after Vice President Cristina Kirchner ruled out -once again- a possible presidential candidacy, and then the government announce a series of measures to get the economy back on track in an election year.
The leading S&P Merval index gained 1.5% to 323,611 points, after falling 0.56% the day before and recording an intraday record level of 324,614.98 units.
With the withdrawal of Cristina’s candidacy, “The political outlook does not seem to be getting any clearer. It is to be hoped that his announcement may marginally encourage investor sentiment, but it is unlikely to be disruptive. His decision is nothing more than a release of his vision of the current situation, statements already known and that do not have a preponderant impact on the development of markets today”commented to Ambit Joel Lupieri, from Epyca
Let’s remember that The Government announced on Sunday a package of measures that aim to contain galloping inflation and strengthen its economy three months before the primary elections in the presidential contest, while negotiating a reduction in targets with the International Monetary Fund (IMF).
“The announced measures were little liked”said an operator and pointed out that “The investor seeks to hedge against uncertainty, either with dollars or in well-liquid stocks such as energy.”
Bonds and country risk
In the fixed income segment, sovereign bonds in dollars fell to 2.4%. For their part, CER-adjusted securities in pesos trade unevenly.
In this frame, the country risk remained above 2,560 basis points.
Source: Ambito
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