After the strong jump of the day before, the S&P Merval extends its bullish rally this wednesday at renewed purchases of highly liquid paper that help hedge against high inflation, with the renewal of the four-year record level in dollars and great volume dynamics.
The leading stock index S&P Merval improved 0.8%, to 383,859.63 points, after registering its intraday historical maximum in pesos of 385,499.72 units at the beginning of the round.
Given that the stock market registers an increase close to 13% in the course of June, Operators do not rule out short-term profit taking.
The share rhythm has the bullish momentum of Argentine ADRs listed in New Yorkwhich allows it to cross the line of 760 dollars despite the political uncertainty ahead of the presidential primary elections in August.
On Wall Street, Argentine papers operate with the majority of increases, led by Take off (+3.2%); and Galicia (+2.1%).
On Tuesday, the actions of the Argentine financial sector experienced a day of glory, both in Wall Street, as in the Buenos Aires stock market, where they registered significant double-digit increases, what for some operators was the product of renewed bets of the so-called “electoral trade”.
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 climbed 5.5%, to 380,757.45 points.
For some operators, the specific news that triggered 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.
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.
For some analysts, however, the news from Itaú and Banco Macro is not enough to explain the strong rise in bank paper, and they did not rule out that the main “driver” of the day is linked to some positive sign in the negotiations between Argentina and the IMF. “Banking is a sector that is behind schedule and in the medium term it can work, but there is no positive news in the short term. I don’t know what triggered this, perhaps some outside rumor that the negotiations with the Fund are advancing and, then, some The fund began to pay. The agreement with the IMF is the only thing that is going to give us a hand now, much more than what could be achieved on the recent tour in China. But I didn’t see anything really concrete,” indicated a source of the market.
But to analyze the rise on Tuesday, the movement that emerging markets have been showing since the start of the month should not be ignored. “We are seeing a strong rotation towards emerging markets, particularly since the start of the month, the ETS EEM, has already risen 4.5%, driven by the rise in Brazil and China, with their respective ETFs, which showed increases in the that goes of the month of 8%”, Brian Arce, Liebre Capital’s business officer, told this medium.
Bonds and country risk
In fixed income, the dollar-denominated bonds recorded widespread increases the day before, which, in some cases, reached 6.7%, such as the AL41D. The podium with the highest hikes of the day was completed by the AE38D (+6.3%) and the GD38D (+5.9%).
So, The country risk measured by the JP.Morgan bank fell 5.1% (128 units) to 2,388 basis points, the lowest in almost two months.
Source: Ambito
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