Argentine assets closed with strong increases in full operational readjustment due to previous holidays and speculative movements ahead of the presidential election.
Argentine stocks and bonds extended bullish streak this Wednesday June 21 motivated by the “electoral trade” a few days from closing of lists for the presidential electionsin view of the rise of the Bovespa in Braziland after that This day the National Government will make a payment to the International Monetary Fund (IMF) for US$1.900 million in Special Drawing Rights (SDRs).
Dollar bonds registered strong increases. The main increases were for Bonar 2030 (+9.8%), Bonar 2029 (+5%), Global 2035 (+4.9%), Bonar 2041 (+4.9) and Bonar 2035 (+4.9% ). The country risk measured by JP Morgan fell 39 units, to 2,316 basis points.
“In the last 30 days (previous), sovereign bonds registered a surprising increase of 11% in dollars. We say ‘surprising’ because, at first glance, did not seem to be associated with any particular event. However, from a more detailed perspective, it seems to be explained by a number of factors,” said Juan Pedro Mazza from the Cohen liquidation and placement agency.
“Bonds had lagged behind stocks. While in the last 12 months the S&P Merval accumulates a rise of 87% in dollars and is currently at 740 (dollars), bonds rose only 13%, and country risk remains close to maximums at 2,300 points. This misalignment seems exaggerated, despite the fact that there are reasons for corporate risk to be lower than sovereign risk,” he said.
The electoral trade behind this rise?
“The bets on the ‘electoral trade’ continue to be focused on the most liquid papers, since they are the ones selected by foreign participants who would be boosting the volumes,” said the economist Gustavo Ber.
In that framework, the Telecom shares climbed 9.3% among Argentine companies listed on Wall Street, closely followed by YPF (+6.3%), and Transportadora de Gas del Sur (+4.1%).
Source: Ambito
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