Dollar bonds rose sharply, with the Globals in the lead, while the country risk touches its lowest in almost two months. as long as the S&P Merval fell after the strong jump of the day before; however Banking entities were once again among the papers with the highest earnings of the day. Investors are still watching the renegotiation with the IMF, and anticipating the electoral trade.
In the fixed income segment, the dollar-denominated bonds registered strong increases. The biggest rise was for Global 2041 (+7.7%) but Bonar 2038 (+3.6%), Bonar 2028 (+3.3%), and Bonar 2030 (+2, 8%). So, country risk measured by the JP.Morgan bank, it fell 42 units to 2,346 basis points, a level similar to that registered in mid-April.
The Ministry of Finance will specify tomorrow a new voluntary debt exchange in pesos to refinance the more than $6,000 million that mature during the third quarter of this year, for titles payable in 2024 and 2025. The largest amount of this operation corresponds to this month, when $1.8 billion matures, of which close to 85% is in the hands of the private sector and the rest in the hands of different public departments.
The Ministry of Economy explained last week that “given the proportion of maturities of the public sector and the accompaniment of the private sector in periodic tenders, the objective (of the exchange) is to achieve an extension of terms that clears maturities and generates greater predictability in the market“.
A private bank agent commented: “There are prices in pesos for stocks 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.”
At the same time, the Government negotiates with the International Monetary Fund (IMF) to reschedule goals and advance disbursements, days after renewing and expanding a line of currency swap with Chinawith the idea of give margin to the central bank (BCRA) to sustain the price of the peso and stop the bleeding of reserves.
“The Government got some air to cushion the effects of the drought with the activation of another US$5,000 million of the Chinese ‘swap’ (…) The next financial ’round’ is the ‘recalibration’ of the agreement with the IMF”Delphos Investment said.
Shares and ADRs
The leading stock index S&P Merval fell 0.1% to 388,089.58 pointsafter recording its intraday record high of 388,548.78 units.
However, among the main increases was the financial sector for the second consecutive day. This is how they led the rises Macro bank (+4.8%), Grupo Financiero Galicia (+4%), and BBVA bank (+3.7%). The losses meanwhile were for Transener (-3%), Ternium (-2.8%), and Aluar (-2.2%).
On Tuesday Banco Itaú confirmed that it is in talks with Banco Macro to sell its operations in Argentina.
Source: Ambito
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