After the strong jump of the day before, the S&P Merval extends its bullish rally this wednesday june 7 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 porteño improves 1.89%at 388,089.58 points, after registering its intraday historical maximum of 388,548.78 units.
The Government negotiates with the International Monetary Fund (IMF) reschedule goals and overtake disbursementsdays after renewing and expanding a line of currency swap with Chinawith the idea of giving the central bank (BCRA) room to sustain the peso’s price and stop the bleeding of reserves.
“The Government obtained some air to cushion the effects of the drought with the activation of another 5,000 million dollars from the Chinese swap (…) The next financial ’round’ is the ‘recalibration’ of the agreement with the IMF”Delphos Investment said.
“There are prices in pesos of shares and bonds that look attractive and the market makes it known every day, although the selectivity is notorious based on the perception that each investor has”, commented a private bank agent.
He Ministry of Economy of Argentina announced on Monday an operation of voluntary conversion of assets in pesos with maturities in June, July, August and September for other securities with amortization between August 2024 and January 2025.
Argentina will celebrate presidential election in octoberwith primaries in August, which generates tension in the formation of alliances and lists a few days after the respective closures, with the condition of inflation that could exceed 130% in 2023.
Since the bag scores a increase of around 14% in the course of Juneto the rising pace of ADRss listed in New York, operators do not rule out short-term profit taking.
Bonds and country risk
In the fixed income segment, the dollar-denominated bonds also rise, with increases led by the AE38 (+2.4%); the AL30D (+2.3%), and the GD46 (+2.1%).
So, country risk measured by JP.Morgan bank falls 51 units to 2,337 basis points, a new minimum in almost two months.
Source: Ambito
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