Shares of the Argentine financial sector soar to more than 16% this tuesday june 6and lead to the S&P Merval of Bolsas y Mercados Argentinos (BYMA) to write down your highest daily rise in several weeks, and reaching its highest level in dollars since 2019.
At a time when progress is expected in the negotiations with the International Monetary Fund (IMF) to reschedule goals and advance disbursements, the stock index of the Buenos Aires stock market scaled 4.4%, to 376,695 points. In dollars (CCL)the leading panel touches maximums since 2019, very about 760 points.
Financial sector shares climb to more than 16%: Banco Macro jumps 16.2%; Superviele, 11.4%; Galicia, 11.1%, and Banco BBVA, 9.1%.
On Wall Street, the dynamics of bank papers were very similar: Banco Macro climbs 13.1%; Superviele, 11.7%; Galicia, 11.5%; and Banco BBVA, 10.9%.
The specific news that generated a greater appetite in the financial sector, something that had already been manifesting in recent days, was that The Brazilian bank Itaú, the largest in Latin America and the Southern Hemisphere, announced that it is in negotiations to sell its operations in Argentina to Banco Macro.
“Itaú clarifies that it is in preliminary negotiations with Banco Macro SA, based in Argentina, in order to divest itself of its operations in that country”expresses the statement signed by Renato Lulia Jacob, responsible for relations with investors and the market.
“Although both banks are negotiating and have not yet reached an agreement, the truth is that the news works as a kind of catalyst to boost the financial sector, which is also super behind,” commented to Ambit Rafael Di Giorno, director of Proficio Investment.
Counted the increases of this daybank shares are still nearly 60% below their 2018 highs.
Another market analyst remarked that “Banks have been recovering ground, and the Merval is exceeding 750 points in dollars due to renewed tactical bets towards the ‘electoral trade’, even within a climate of growing tensions in the coalitions already in the final stretch towards the definition of alliances and the candidacies.
Meanwhile, in the midst of an inflationary escalationthat could exceed 130% this yearand committed reserves of the Central Bank, the Ministry of Economy announced a conversion of assets to clear maturities.
In addition, 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 continue with the International Monetary Fund to review targets and disbursements at times of low international reserves.
“We are still waiting for news about the negotiations with the IMF. For the moment, the market discounts that disbursements will be advanced by 2023 (10.8 billion dollars), even if it is a matter of simple make-up for net reserves”said Portfolio Personal Inversiones.
Bonds and country risk
In fixed income, the bonds denominated in dollars operate with generalized increases that, in some cases, reaches 7.5% (AE38), while the country risk measured by the bank JP.Morgan fell strong 45 units to 2,471 basic points.
The Ministry of Economy announced on Monday a voluntary conversion operation of assets in pesos with maturities in June, July, August and September for other securities maturing between August 2024 and January 2025.
The analyst Salvador Vitelli estimated that “97% of the debt in pesos is indexed. In nominal value it is 107,000 million dollars, and of that debt, 76% has its maturities operating between 2023 and 2024 (82,000 million dollars)” .
Source: Ambito
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