Meanwhile, the Country Risk -prepared by the JP Morgan bank-, operated almost unchanged at 1,749 basis points, after renewing its historical maximum (since the debt swap in 2020) of 1,761 units intraday last Friday.
The Argentine markets remain closed this Monday for a national holiday and will resume activity at normal hours this Tuesday.
BYMA’s S&P Merval Index lost 4.3% to 85,695.15 units on Friday. In this way, the leading panel accumulated a drop of 9.8% last week, that is, the worst performance in pesos since the end of October 2020. Measured in dollars, it sharply cut all the increase achieved in the last month and returned to levels prior to PASO, falling 10.2% (measured with the average CCL of ADRs).
The worst weekly performances were registered by Central Puerto (-16.4%); Grupo Financiero Galicia (-15.6%); and bank BBVA (-15.7%); Macro bank (-13.3%); and Edenor (-13.2%).
“It gave the sensation that the market lost a good part of the optimistic expectations that it had been offering since the beginning of the month and was supported by the doubts that remain in the face of the variety of post-election scenarios, with a volatility in the prices that continues to be a protagonist of the scene“, said Javier Rava, director of Rava Bursatil.
After knowing the electoral result, the president Alberto Fernández said that “in the first week of December we will send a bill that specifies the multi-year economic program” within the framework of a lengthy debt negotiation with the Fund.
Doubts about the near future of the economy were reflected in a sharp fall in share prices, a high country risk and a persistent dollarization of portfolios that pressured the exchange market. Last week the BCRA maintained its selling position: it registered a negative balance of US $ 117 million.
“The negative sentiment in the local market persists. The macro challenges to be faced in the coming months are not minor”said an agent. Added that “The pressures in the exchange rate and the disorder in the monetary field demand economic measures and until such time as an economic path is defined that orders the macro, it is difficult to begin to see a sustained change in the trend in prices.”
From Personal Portfolio, in turn, they remarked that “The electoral result increased optimism for 2023 and defined a new political map within Congress with power distributed among the different political forces. However, the political and economic uncertainty did not dissipate.”
Source From: Ambito
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