Argentine shares stopped their bullish rally this Thursday June 22 and they suffered strong setbacks, in contrast to dollar bonds that extended their positive streak and gained up to 6.4%.
The falls in Argentine ADRs were led by Grupo Superville (-7.6%), Transportadora Gas del Sur (-6.2%), Grupo Financiero Galicia (-6%), and YPF (-5.9%). On the contrary, Take off actions advance (+6.5%), Mercado Libre (-1.7%) and BBVA bank (+1.4%).
For her part, the porter bag drop for the first time in 6 days due to foreseeable profit taking, after previous strong increases that pushed the leading panel to renewed maximum historical values in pesos. He S&P Merval it lost 3.2%, to 416,065 points, after advancing a strong 5.1% in the previous day and setting a record level in pesos of 430,470.64 units.
Investor attention was focused on political aspects just two days after the registration of presidential formulas for the primary elections in August, heading to the general elections in October.
The historic drought caused the loss of some US$20,000 million for the treasury from the rural export sector, which causes a noticeable retraction in the reserves of the Central Bank (BCRA).
This makes the Government expedites negotiations with the International Monetary Fund (IMF) to change pending goals and look for an advance of new disbursements, while there are signs of good will to cancel the payment of some US$1.9 billion in Special Drawing Rights (DEG) according to the committed organizational chart.
The electoral context has the expectation of a change of government in the short term that adopts concrete measures to correct the structural imbalances in Argentina, a fundamental basis for restoring investor confidence and accessing external private credit.
In the external context, all eyes are on the second part of the semi-annual conference of the Federal Reserve Chairman, Jerome Powell, before Congress. on the eve, Powell told lawmakers that expecting further Fed rate hikes is “a pretty good guess” for where the central bank is headed if the economy continues in its current direction.
Bonds and country risk
In the fixed income segment, and unlike shares, sovereign bonds in dollars continue their positive streak led by the Global 2041 (+6.4%), Global 2046 (+3.4%), Bonar 2029 (+3.1%) and Bonar 2030 (+2.7%).
“The bonds have the incentive of a good liquidity framework and parities in dollars that allow you to test despite the risks of a complex Argentina,” explained a private bank agent.
Thus, the risk country What does JP Morgan measure? it fell 0.8% to 2,243 basis points.
Source: Ambito
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