An energy stock climbed more than 10% on the S&P Merval; country risk fell to lows of almost a month

He S&P Merval of Argentine Stock Exchanges and Markets (BYMA) started the week firmly climb and this Monday June 5 climbed more than 2%in a day in which the Edenor share, with a jump of more than 10%.

The leading stock index of the Buenos Aires stock market advanced 2.2%, to 360,825.63 points, after marking a intra-hour historical maximum level in pesos of 362,027.28 units. “The S&P Merval improves from a renewed more positive behavior among the main ADRs, since they continue to be the preferred vehicles for operators when it comes to managing their exposure to the rhythm of the external and internal context”, said the economist Gustavo Ber.

The main rises of the day were led by the shares of the electricity distributor Edenor (+10.1%); Telecom (+6.2%); and Banco Macro (+5%). The only stock that closed in negative territory was Aluar (-0.5%).

On Wall Street, meanwhile, Argentine ADRs also closed with widespread increases. The biggest positive variations of the day were for: Edenor (+8.1%); Telecom (+6.9%); and Grupo Financiero Galicia (+4.3%).

In relation to the strong rise of the distributor, some operators linked it with the new rate increase that takes effect in June. However, as this is news that was released several weeks ago, and given that Edenor’s rally was very sustained, other traders doubted this driver, and associated the jump in the stock with a “speculative rise”.

In the local scenario, the Government managed on Friday to renew and expand the currency swap line with China that would give the Central Bank (BCRA) room to support the price of the dollar, and appease inflation, while negotiations with the Monetary Fund continue. International to review goals and disbursements at times of reduced international reserves.

“The government’s objective is the total recalibration of the goals, together with the corresponding ‘waiver’ for the goals not met in March and an advance of the disbursements planned for the second semester with a percentage available for exchange interventions,” Delphos Investments said.

“However, it is difficult for the Fund to accept all these requests without greater demands for fiscal adjustment and an exchange rate correction in the short term, which would complicate the chances of the pro-government coalition in the presidential elections,” he estimated.

In the United States, activity indicators were released for April and May (Factory Orders, ISM Services, S&P Global Services PMI, among others), which were in all cases below expectations, except for Durable Goods Orders, which they came online. After alternating ups and downs, the S&P 500 closed down 0.2%, the Dow Jones fell 0.6%, and the Nasdaq Composite suffered a somewhat smaller drop (-0.1%). The 10-year bond rate fell 1 basis point to 3.68%.

For its part, WTI oil gained 0.2% to $71.99 after Saudi Arabia announced a cut in its oil production by 1 million barrels per day.

Bonds and country risk

in the segment of fixed renton the other hand, the bonds denominated in dollars They closed with the majority of increases. They stood out in the day AL29D (+3.9%); GD41D (+2.8%); and the GD35D (+1.9%). “Dollar bonds started the week very well and takers operated throughout the day,” commented SBS.

For his part, he risk country fell 1.3% until the 2,516 basis points, the lowest level in almost a month.

In the peso market, titles dollar-linked continue to show little activity and ended with average gains of 0.3%, with volume concentrated in Q2V3.

The segment that yes it is moving it is the one of the duals, with very good volume along the curve: it closed with average gains of 0.5% (the TDS23 climbed 1.3%).

Finally, the CER bonds (inflation) rose 0.3% in the short tranche and 0.9% in the long tranche of the curve, highlighting Q2X5, which rose 1.8%.