The Argentine stock market rose this Wednesday, May 17, in reaction to the ratification of Vice President Cristina Fernández to exclude herself from the next electoral contest. For their part, ADRs closed with increases of up to 10% thanks to the good day on Wall Street.
The Vice President of the Nation announced through a letter published on social networks on Tuesday night that she will not be a candidate, as she announced on December 6 of last year. “I will not be a pet of power for any candidacy”he remarked.
Maria Moyanoa corporate debt analyst for the Adcap firm, said that Cristina Fernández’s withdrawal from the electoral contest “helps prices improve.” “Although the market has not finished believing that Cristina Fernández is not going to present herself, this is good news”he added.
For his part, the analyst Marcelo Rojas I think that “Obviously it helps that Cristina (Fernández) excludes herself (as a candidate), she is someone who has not liked the market forever.”
Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina
In the trading round, the leading S&P Merval index rose 2.8% to 327,788.63 points, after marking an intraday historical maximum level of 330,437 units. According to the operators, the upward traction in financial and energy paper is due to foreign-listed paper (ADRs).
Thus, in the leading panel, the main increases were for Aluar (+5.3%), Sociedad Comercial del Plata (+5.2%), and Transener (+5.1%).
For their part, the three main indices on Wall Street rose. The Dow Jones index gained 1.2%, the technology-based Nasdaq rose 1.3% and the S&P 500 1.2%. The square was relieved by the hope of an agreement that allows increasing the debt limit of the United States, after the optimism expressed by President Joe Biden.
Within this framework, Argentine shares traded with the majority of increases, the main ones: Despegar (+10.1%), Central Puerto (+4.5%), and Grupo Financiero Galicia (+4.3%).
Bonds and country risk
Dollar bonds traded with the majority of increases. The increases were led by Global 2035 (+2%), Global 2040 (+1%), and Global 2038 (+0.6%). For its part, the country risk measured by the JP.Morgan bank fell 0.8% to 2,554 basis points.
“The Globals extended the increases. Contrary to emerging debt in the rest of the world, local dollar bonds they closed their $25.97 weighted average price vs. $25.77 yesterday. This exhibited increases in the curve between 0.5% and 1.1%. The disparity between the behavior of local and international fixed income lies in the fact that the performance of the Globals was due rather to local or idiosyncratic factors,” they explained from PPI.
For his part, dollar-linked sovereigns closed with average increases of 0.8%, and concentrated the volume on T2V3. The duals, in turn, traded unchanged in the short tranche and takers in the long tranche (+1.2%). Regarding the CER segment, the short tranche (with maturities in 2023) gained 0.15%, while the medium and long tranche alternated ups and downs and rose an average of 0.3%.
This Wednesday, in addition, the Ministry of Economy achieved placements for $751,742 million, obtaining net debt for a total of $162,603 million. With this result, the positive financing so far this year is more than $910,000 million.
Source: Ambito
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