The sovereign debt in dollars closed with the majority of increases this Friday, June 2, encouraged by the agreement reached by the Government with China to renew and expand a currency swap line to provide exchange margins to the central bank (BCRA), while news is awaited for an exchange of bonds in pesos.
“The week closed with a good performance of the local market. First of all, the Globals registered increases of between +1.3% and +2.5%”PPI assured.
So, Global 2038 shot up to 6.9%, while Global 2046 (+3.8%) and Bonar 2029 (+2.1%) also rose strongly. The country risk measured by the JP.Morgan bank fell 2.7% to 2,548 units, the biggest daily drop in 3 weeks.
“Although the ‘swap’ thing can give some air to the external front, today (Friday) the external markets are positive, this being the main factor of the improvement”said Fundcorp’s Roberto Geretto.
Miguel Pesce, president of the Central Bank (BCRA) announced this day that he renewed with the president of the Bank of the People’s Republic of China (PBC), Yi Gang, the currency swap for another 3 years. In this way, a second tranche of up to another 35,000 million yuan (equivalent to US$5,000 million) was activated, which will be released when the entity requires it and with which they can intervene in the exchange market.
“The Government buys time and in lean times it is not a small thing. The reinforcement of reserves (from the BCRA) and another debt swap for the quarter until August, allay fears of financial setbacks and this is reflected in the investors, although with the natural prudence”, said an agent of the foreign private bank.
In turn, foreign markets improved, with Wall Street rising to 2.1%, after the publication of labor data in the United States and after the approval of a bipartisan law backed by President Joe Biden that raises the public debt ceiling, avoiding a historic first default in that country.
Besides, the Ministry of Economy plans a new launch of voluntary conversion of assets in pesos in order to clear debt maturitieswhich would be announced as soon as possible, according to market sources.
Shares and ADRs
The S&P Merval of Bolsas y Mercados Argentinos (BYMA) barely fell 0.1% with profit taking, at 352,936.83 points, after marking its intraday historical maximum of 358,155.61 units in the first part of the business. In this way, the selective rose 3.3% in the week.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
The stocks that make up the index closed mixed. The main increases were for Edenor (+8.1%), Cresud (2.4%), and YPF (+1.6%). The main decreases, meanwhile, were for Aluar (-3.3%), Transener (-3.2%), and Grupo Financiero Galicia (-2.1%).
On Wall Street, whileArgentine ADRs record a good day. The most relevant promotions were for: Edenor (+10%), Bioceres (+4.1%), and Irsa (+2.6%).
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