Argentine actions rise strong this Wednesday, August 16, on Wall Street, while dollar bonds again lost ground -with some exceptions such as the AL30-, amid local political and economic uncertainty, after the good performance of the ultra-liberal candidate javier milei in the presidential primary elections over the weekend, and after the devaluation of the peso last Monday.
The advances of Argentine papers on the New York Stock Exchange were led by Transportadora de Gas del Sur (+7.4%); YPF (+5.2%); and Telecom (+5.1%).
On the Buenos Aires stock market, the leading stock index S&P Merval climbed 5.7%, to 557,197 units, after gaining 6.3% the day before.
Within this framework, the promotions of Galicia Financial Group (+8.8%); Transportadora de Gas del Sur (+8.7%); Comercial del Plata (+8.2%); YPF (+7.6%); and BBVA bank (+7%).
The Central Bank (BCRA) devalued the wholesale peso by 17.9% on Monday and promised to keep it fixed at 350 for each dollar until the presidential elections in October, while raising its reference rate to 118% annual nominal in a attempt to remove exchange rate pressure.
For its part, the National Securities Commission (CNV) reduced the quota for individual trading of up to 40,000 dollars a week to limit operations in the so-called “MEP”, where dollars are accessed through the purchase and sale of pesified assets.
“The market does not seem to believe that they will be able to maintain the (fixed) exchange rate until October”said analyst Salvador Vitelli. The exchange pressure caused the blue dollar to touch a nominal record of $790 this Wednesday, in a market that takes currency and lacks supply, although business has been reduced due to official controls, operators said.
The libertarian Milei, who proposes to dollarize the economy and eliminate the BCRA, achieved 30% of the votes, followed by the opposition coalition headed by Patricia Bullrich and then by the ruling party, whose candidate is Economy Minister Sergio Massa.
Bonds and country risk
In the fixed income segment, dollar-denominated bonds started lower for the third consecutive day, although some green signs are beginning to be seen.
The most relevant falls of the day were led by the Bonar 2035 (-3.3%). On the other hand the Bonar 2030 or AL30 rebounded 1.5%, and Global 2030 or GD30 rebounded 3.3%.
The Argentine country risk measured by the JP.Morgan bank fell 1.5% to 2,172 basis points.
Source: Ambito
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