Faced with these important falls, and with the renewed fall of the dollar “counted with liquid”, the S&P Merval index of Argentine Stock exchanges and Markets (BYMA) collapsed 4.1%, to 81,947.65 points, after a bullish start very weakened.
The shares that depreciated the most during the day were those belonging to the financial sector: Grupo Supervielle lost 7.7%; Banco Macro, 6%. Only Cablevisión’s papers ended positively (+ 1%).
At the rate of market business, and with a downward readjustment in the alternative exchange market, the focus was on the presentation of the 2022 Budget. The Minister of Economy Martin Guzman defended the project in Congress, which kept projections for next year: GDP growth of 4%, inflation of 33% per year and a dollar by the end of 2022 at $ 131. Far, for now, from market estimates.
“Argentina is experiencing a process of strong economic recovery: economic activity is growing in a solid way. We hope that this year (that) the GDP will grow around 10% (in 2021)”, said the official before the deputies of the Budget and Finance Commission.
Added that “It is a central objective of economic policy to attack the inflationary problem.” This phrase is tied to a price escalation that will exceed 50% in 2021 according to the projection of private analysts.
The Fund and Argentina are “fully committed” to achieving a new program, the IMF said on Friday, Although more talks are needed following recent technical meetings between the two sides in Washington. But on the same Friday, a speech by Vice President Cristina Fernández de Kirchner in which she showed her opposition to an agreement under the normal conditions of the organization once again put a blanket of uncertainty in the financial market.
As for Wall Street, for its part, the S&P 500 lost 0.9%, to 4,668.46 units, while the Nasdaq lost 1.4%, to 15,409.72, and the Dow Jones Industrial Average fell 0.9%, to 35,657.01 units. . It was at the beginning of a crucial week where the Fed’s monetary policy will be defined: everything indicates that the pace of “tapering” will accelerate, following recent statements by the Chairman of the Federal Reserve, Jerome Powell.
Even Apple fell, even after JP Morgan raised its price target for the iPhone maker. The company is close to becoming the first in the world to reach $ 3 trillion in market value.
In fixed income, sovereign bonds denominated in dollars closed with the majority of losses, after suffering more pronounced falls at the beginning of the year. The main losses of the wheel were recorded the Bonar 2029 (-2.7%); the Bonar 2038 (-2%); and the referential security, Bonar 2030 (-1.2%). Meanwhile, the Globals ended with some increases, such as 2030 and 2035 (+ 0.4%). Thus, the weighted average price of the securities closed at $ 34.41.
All in all, the Country Risk prepared by the JP Morgan bank rose four units to 1,709 basis points, even if intraday it climbed to 1,759 units due to the prevailing uncertainty.
“Negotiations with the IMF are extended and the agreement takes a long time to arrive. In this framework, and considering the constant loss of foreign currency of the Central Bank (BCRA) the weakness within the sovereign curve is not surprising”, They said from Portfolio Personal Inversiones (PPI).
Meanwhile, we got few signals regarding the deal with the IMF. In the exchange, the CCL tumbled – $ 6.6 to $ 203.5 / 204.25. It probably has to do with the seasonal effect of the BBPP tax and some of the sale of companies for the payment of the Christmas bonus. However, the BCRA is unable to rebuild reserves. The monetary authority bought only US $ 5 million in the MULC (-US $ 392 million MTD). When is the liquidation of the wheat crop coming !? In pesos, we observe weakness within CERs (-0.2% / – 0.5%) awaiting the CPI tomorrow. November inflation is estimated to be around 3.0 / 3.2%. Finally, the result of the Treasury tender was very satisfactory. Based on the net financing resulting for the month (P $ 100m), the last quarter currently exhibits the highest roll-over of the year: 1.40x.
Source From: Ambito
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