Argentine shares climb up to 9% on Wall Street and S&P Merval scores sixth rise in a row

Argentine shares climb up to 9% on Wall Street and S&P Merval scores sixth rise in a row

The Argentine stocks advance firmly on Wall Street this Monday, January 22, while the porteño bag scores his sixth upload in a row this Monday, January 22, in the midst of purchases driven by coverage in the face of high inflation, at a time when the market’s gaze focuses on the changes that the Government made to the omnibus bill.

In this way, the leading index S&P Merval rises 3.3% to 1,213,127.56 points after accumulating an advance of 13.7% during the past week. Meanwhile, the Merval in dollars rises 1.7% to 914.91 points.

In this framework, the promotions of BYMA’s leading panel are headed by Supervielle Group (+9.1%); Telecom Argentina (+8.6%), and BBVA bank (+6.9%)

The Government gave rise to the claims of the “dialogue” opposition and sent this Monday to Congress a new draft of omnibus law that contemplates modifications with the intention of approving the bulk of the changes presented.

According to the document, among the main variations, the Executive Branch agrees to eliminate YPF from the list of companies to be privatized and for the firms Nucleoeléctrica, Banco Nación and ARSAT it was established that the State can only carry out a partial privatization, and must maintain control of the company.

On the other hand, the administration agreed to the governors’ demand for what limited withholdings to regional economies to zero. “They are set at 0% for regional economies. At the same time, the power of the Executive Branch to increase export duties is eliminated. Only the power to reduce them is maintained,” reads the new article.

Furthermore, it is committed maintain the pension formula until April and then an automatic update for monthly inflation will begin based on the latest inflation data available from INDEC.

“It is made public that the Government gives in on some points of the omnibus law and the market reacts well. Viability is paid for, too,” commented the financial analyst Leandro Ziccarelli.

Argentine shares on Wall Street

For their part, Argentine papers listed abroad rise to almost 9% led by Edenor (+8.7%), Supervielle Group (+6.5%), and Galicia Financial Group (+6.5%). On the contrary, only the assets of Bunge (-2.6%); Adecoagro (-1.3%).

At the same time, YPF shares rose 1.6% on the New York Stock Exchange to US$15.88, after the Government ordered that the oil company be privatized.

Meanwhile, the new official text stated that companies Nuclear, National Bank and ARSAT established that the State can only carry out a “partial privatization, with the State having to maintain control of the company.”

In addition, the participation of the Bicameral Privatization Commission of Law No. 23,696 was incorporated to monitor the respective procedures. On the other hand, article 9 was eliminated and the current wording of article 35 of Law No. 24,804 was expanded in order to maintain the power of veto in some decisions of Nucleoeléctrica Argentina Sociedad Anónima.

Finally, Article 11 was eliminated, maintaining the obligation of the State to stop a veto action for decisions that imply the closure of the activity

Source: Ambito

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