BYMA’s leading S&P Merval index gained a slight 0.18% to the all-time high of 96,318.34 units, after hitting its previous intraday high of 96,138.23 points towards the close of trading on Monday.
The companies in the energy sector were driving the positive streak in the market, with the state oil company YPF being one of the preferred hedges pending the presentation of an encouraging balance for the third quarter.
Traders agreed that stocks, unlike sovereign bonds, have found demand for the rapid liquidity coverage in favor of dollars to be transferred abroad, which made it a prominent place weeks ago as pre-electoral coverage.
The third largest economy in Latin America is hit by high inflation, at a time when it tries to leave behind a long recession and renegotiates a multimillion dollar debt with the IMF.
Country Risk and Bonds
In the fixed income segment, on the other hand, dollar bonds extended the increases on Friday, and posted gains of between + 0.3% and + 0.6%. The weighted average price was $ 33.86 (+ $ 0.12 1D; + $ 0.59 5D), while the average rate fell to 18.86%.
“Beyond the firm tone in the emerging debt market, politics will play a fundamental role. The latest polls indicate that the opposition would increase the difference obtained against the FdT in the PASOs both in CABA and PBA. Here we believe that the real question is it lies in the attitude of the post-election government, “they commented from Porfolio Personal Inversiones (PPI).
In this context, the Country Risk prepared by the JP.Morgan bank fell 10 units, to 1,716 basis points, compared to an all-time high of 1,747 units reached last week.
In the peso segment, CER bonds posted increases of 0.4% in the short tranche, and an average 0.1% in its longer tranches.
Lastly, dollar linked sovereign bonds operated as takers, increasing 0.1% in Q2V1, unchanged for TV22, and increases of 1% and 0.3% for Q2V2 and TV23, respectively.
It is worth highlighting the notorious drop in the prices of ROFEX’s positions at the end of the wheel. “Undoubtedly, it is a new example of the growing intervention of the BCRA in the term market with the aim of satisfying the demand for coverage. In fact, so far this month, the Open Interest in ROFEX has already risen to US $ 858m ( until Friday) “, they added from PPI.
Source From: Ambito
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