The stock market falls this Thursday for short gains after a historic peak in pesos on the eve of the hedges to guard against inflation, devaluation and electoral uncertainty. In this context, Argentine papers on Wall Street and bonds in dollars operate with strong falls of more than 7% and the country risk registers its first rise in 4 days.
This Thursday, May 17, in the fixed income segment, sovereign bonds in dollars operate with pronounced falls of more than 7% led by the GD30, followed by the AL30 (-6.3%) and AL29 (-5.2%). Thus, the country risk scores its first rise in 4 days and stands at 2,551 basis points.
The Government negotiates with the International Monetary Fund (IMF) changes in goals in its agreement for 44,000 million dollars and seeks to have an advance of funds as soon as possible to seek to curb the weakness of the peso, together with the galloping annual inflation already projected in three digits.
“The economic team would assume that the IMF would finally advance the disbursements that the agency had planned for Argentina during the rest of 2023 in June,” said the SBS Group based on a press report.
He maintained that “now the talks would go over what percentage of these funds could be used to intervene in the exchange market. Thus, the Government would aim for the use of 60% of these funds while the IMF would be willing to allow 20%”.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
S&P Merval and ADRs
Contrary to Wall Street, the S&P Merval fell 0.9% to 324,692.98 points, after reaching its intraday record of 330,437 units. Meanwhile, Argentine shares operate with the majority of declines, where only the shares of Despegar (6.9%), Globant SA (0.5%) and Edenor (0.2%) stand out. Declines of up to 3.2% were registered in Grupo Financiero Galicia, Banco Macro (-2.9%) and BBVA (-2.7%).
“The companies that we tend to label as ‘defensive’, such as Ternium and Aluar, continue to position themselves as the favorites in the market”, said consultancy Delphos Investment.
He added that with them “he finds refuge against the nominal acceleration of the local economy and protection against an eventual exchange jump since its operations work in official dollars and stand out for their export capacity. The two industrial firms lead the one-month and three-month cumulative returns.”
The Government announced on Sunday a package of measures that seek to contain the escalation of retail prices, with a rise in the reference interest rate, more interventions in the exchange market and agreements with creditors.
Source: Ambito
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