The S&P Merval advances after four falls in a row: local shares climb up to 3.6%

The Buenos Aires stock market rebounds this Tuesday, December 19, and breaks a streak of four falls in a row. The Argentine stocks that are listed in Wall Street they also operate upward. This happens within the framework of the second week of the government of Javier Milei and on a day in which the Board of Directors of the central bank (BCRA) decided lower the rate of fixed terms traditional 30 days 110%.

The S&P Merval rises 1.7%until 937,911.98 units. That way, break a streak of four consecutive days of decline.

The main increases in Argentine papers are led by Argentine Stock Exchanges and Markets (+3.6%), Transener (+3.6%) and Northern Gas Carrier (+3.3%). Meanwhile, the only one that falls is Mirgorwhich lost 1%.

Meanwhile, in Wall Streetthe Argentine stocks operate with majority of casualties. Those that fall the most are those of BBVA (-2.8%), Macro Bank (-2.6%) and Supervielle Group (-2.6%). For their part, those that advance the most are those of Telecom (+2.9%), Free market (+1.2%) and Bioceres (+0.7%).

Upload the S&P Merval but ADRs fall: In what context?

The actions Argentinian rose across the board in New York this Monday, December 18, at a time when all eyes are on the package of economic measures that was implemented by the government of Javier Milei.

Last Monday, the Government declared the emergency of the transportation, and distribution of electricity and gas sector and provided a framework to carry out a review of rateswhile the National Electricity Regulatory Entity (ENRE) and of National Gas Regulatory Entity (ENARGAS), which stimulated the roles of the energy segment.

Milei, who took power a week ago and devalued the peso by more than 50%points to drastic economic changes as a reduction of energy and transportation subsidies and a tax increase.

“The fiscal measures adopted are an emergency for the Government as part of a plan to reduce current macroeconomic imbalances,” Delphos Investment said. “The exchange measures aimed to achieve a substantive closure of the exchange gap, which went from exceeding 160% to close to 25%,” he added.

“The exchange market seeks to rearrange itself after the devaluation of the peso in a context with demand from importers still limited. The BCRA takes advantage of and channels a large part of what is operated in the single and free exchange market,” said brokerage StoneX.

The past, the Central Bank (BCRA) announced that no new tenders will be held Leliqsa Milei campaign promise, and established that Passive Passes will be your main instrument for absorbing monetary surpluses.

In turn, the monetary authority indicated that, starting this Tuesday, Its monetary policy interest rate will become the rate for one-day repos, a rate that since Wednesday of last week was set at 100%, from the previous 126%.. In addition, the fixed term rate goes from 133% to 110%.

For face short-term debt maturities The Government authorized the issuance of public debt instruments for up to two billion pesos (some US$2,497 million).

“This week it will be key to see if there are new announcements in relation to the fiscal plan presented by (the Minister of Economy Luis) Caputo and a first approach to deal with the “omnibus law” in Congress, which will unlock certain issues relevant to the fiscal adjustment “, said Personal Portfolio investments.

“At the tax level, what must be discussed in Congress are the 15% withholdings for non-agricultural products, the reversal of the fourth category Earnings reform, the reform of the Personal Property payment scheme, money laundering and the moratorium proposed by the Milei team,” he said.