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, especially in the Province of Buenos Aires .
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 dollars, it fell 3.2% to 423 points.
In the leading panel, the papers of Banco Macro, Transportadora de Gas del Norte, and Galicia recorded drops of between 7.4% and 7.2%, and led the setbacks of the day.
The volume traded in shares fell 16% and pierced $ 2,000 million, for the first time in eight days, totaling $ 1,974.3 million. It represented 44% of the total traded in equities, since the amount traded by the Cedears yielded 13% to $ 2,460.3 million.
Investors operated increasingly cautiously waiting for details on the multi-year program that will be sent to Congress in early December, as announced by President Alberto Fernández last 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. This Wednesday will be the Day of Militancy and the market will seek to find signals about the political definition within the ruling coalition.
On Wall Street, for its part, the S & P500 gained 0.4%, driven by positive indicators from October, such as retail sales (they rose 1.7% versus 1.4% expected, thus registering the highest increase since March), and production Industrial (showed a growth of 1.6% versus 0.9% expected). These data minimized weak indicators of consumer confidence.
On the other hand, the announcement of who will be the next president of the Federal Reserve from February is imminent, which would come out between Fed governor Lael Brainard and Jerome Powell himself, if President Joe Biden grants him a new mandate, reported from SBS.
Bonds and Country Risk
In the fixed income segment, bonds in dollars registered drops of up to 6.6%, as suffered by Bonar 2030 (AL30D), since the BCRA stopped intervening in that security, which caused the prices of regulated financial dollars to skyrocket. It also happened one day 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 of Portfolio Personal Inversiones (PPI).
After the new limitations, the CCL dollar jumped 8.4% to $ 205. For its part, the so-called “MEP dollar” climbed 6.1% to $ 200.30 and practically equaled the blue, which bounced to $ 200.50.
Meanwhile, the Globals scored a majority of casualties, led by the Global 2030 (-1.5%). “The performance of this Tuesday shows that much more is needed to see a sustained change in trend,” they commented from the market. Thus, the weighted average price was $ 33.81, 5.7% above the post-restructuring minimum.
With everything, Argentina’s Country Risk increased 1.4% to 1,707 basis points, after the strong post-election decline (-3%).
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 1%.
Source From: Ambito
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