In a day in which Wall Street showed rises in its three indices, the declines in Argentine papers were led by the assets of Central Puerto (-8.6%) and those of the financial sector, such as Banco Macro (-8.1%); Grupo Supervielle (-7.8%); Grupo Financiero Galicia (-7.7%); and BBVA bank (-6.7%). In this way, most of the Argentine papers erased their monthly gains and began to accumulate losses in November.
Some traders explained that beyond taking profits, the sharp decline on Tuesday may be linked to a Expectation (electoral) too optimistic for the market, which vanished with Sunday’s results, where the ruling party, despite losing to Juntos, managed to shorten the large difference in votes observed in the PASO.
Leaving the strictly Argentine risk, Mercado Libre shares fell 5.5% after selling one million shares through a public offering to obtain financing for approximately US $ 1.5 billion. The last time it had sold shares was in March 2019, when it raised $ 1.9 billion and that included a direct investment from companies like PayPal. “Although the news was not well received by the market, Marcos Galperín’s company maintains its growth fundamentals and the issuance of shares aims to sustain those fundamentals”, analyzed from IOL invertironline.
Going to the local stock market, BYMA’s S&P Merval stock index plunged 3.6% to 89,674 units, against the 2.1% drop on Monday and its intraday record of 97,024.42 points a week ago.
In the leading panel, the papers of Banco Macro, Transpotadora de Gas del Norte, and Galicia posted declines of between 7.4% and 7.2%, and led the day’s setbacks.
Investors operated increasingly cautiously while waiting to learn details about the multi-year program of more than a year that will be sent to Congress at the beginning of December, as announced by President Alberto Fernández on Sunday.
“You need to know about upcoming government announcements in the next three weeks, what issues were agreed with the IMF, and if there is internal consensus. From there we will see what direction the government’s policies take. Meanwhile, beyond the electoral result, there was no substantial news to generate a change in expectations “, commented an operator to Ambit.
The ruling party fell in Sunday’s elections, for which it ceded power in Congress, which will force a search for consensus with the opposition to leave behind a prolonged economic crisis.
Bonds and Country Risk
In the fixed income segment, bonds in dollars registered drops of up to 6.6%, as suffered by Bonar 2030, after a resolution of the National Securities Commission (CNV), which established that the limit of operations in the stock market “counted with liquidation” (CCL) must respect a technical ceiling (50,000 nominal dollars) beyond the purchases of public securities in foreign currency that each investor has made.
“The new rules, which do not change much in themselves, but add a limitation to the sale with liquidation in foreign currency per calendar week. This will be for bonds in dollars local law of 50,000 nominal, which from now on cannot be offset or netted with shopping”, explained Nicolás Chiesa from Portfolio Personal Inversiones.
With everything, the Argentine Country Risk advanced 1.3% to 1,705 basis points, after the sharp drop after the elections.
On the other hand, the titles in pesos that adjust for CER registered increases of up to 1.2%, while the dollar linked bonds lost up to 0.7%.
Source From: Ambito
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