Bonds in dollars climbed to 4.4% and country risk hit lows in more than two months

The sovereign bonds in dollars closed with widespread increases this Monday June 12 and climbed to almost 4.5%, so the risk country touched minimums of more than two months, in a market that awaits news in the negotiations of the Government with the International Monetary Fund (IMF) to reschedule goals and advance disbursements.

In the midst of a positive day in the international markets, the rise of Argentine bonds in dollars was led by the AL35D, that climbed 4.4%followed by the AL29D (+3.9%), and AL41D (+2.9%). In that framework, the risk country it fell 1.7% to 2,340 pointsits lowest level since the beginning of April, when it reached 2,355 units.

The Minister of Economy, Sergio Massa, will travel to Washington to advance in the negotiations next week, when Argentina’s obligations with the organization expire for about US$2.700 million.

“We will closely monitor the potential agreement between the IMF and the national government, given its impact on the reserves of the central bank (BCRA)”, they said from Portfolio Personal Inversiones (PPI).

Analysts estimate that the BCRA’s net reserves are in the red for some u$s2,000 millionagainst a level of total international reserves of US$32,484 millionaccording to the latest official information.

At the beginning of the month, the Government managed to renew and expand a currency swap line with China, which would give the BCRA room to support the dollar price and appease growing inflation that could be around 150% this year.

S&P Merval closed almost stable

For its part, the Buenos Aires stock market closed with slight low, for accumulated profit taking, in the midst of a calm and selective business operation. This occurred in a context in which world markets awaited news from the Federal Reserve (FED) this week.

Thus, the leading stock index S&P Merval ended with a tiny drop of 0.02%, to end at 381,672.46 pointsafter improving 8.2% last week and registering a maximum intraday historical level in pesos of 388,954.38 units.

The losses of the day were led by the papers of Black Hill (-2.3%); Central Port (-1.4%); and YPF (-1%). For their part, the most relevant increases of the day were those of Telecom (+3.8%), Banco Macro (+2.8%), and Cresud (+0.9%).

“He Merval rose in the last three months no less than 46% in dollars. It is a vehicle for investors in the face of strong increases pending for inflation and the dollar,” said Fundación Mediterránea in this regard.

And they add that this “also reflects the perception of a private sector that is much better prepared to face the challenges”, since they indicate that the leading companies enjoy external and internal credit that the State lacks.

ADRs ended mixed

The shares of Argentine companies listed on Wall Street closed with a mixed trend this Monday, with increases of up to 2.8%, in the case of Telecom; of 2.5%, for Free market; and 1.3% for cresud. While, superville group led falls of up to 1.9%; followed by central portwhich fell 1.8% and edenor, which yielded 1.6%.

The stock market presented “a mixed behavior among the main ADRs, since these papers are the ones that have been concentrating, due to their greater liquidity, those bets more oriented to ‘electoral trade'”said the economist Gustavo Ber.