Argentine stocks and bonds soar up to 13% and country risk falls to four-year lows

Argentine stocks and bonds soar up to 13% and country risk falls to four-year lows

The Argentine stocks and bonds operate with strong rises this Friday, April 5, strengthening its bullish path started this year, supported by purchases by institutional investors.

The index S&P Merval gains 1.9%, to 1,205,637 unitsencouraged by the improvement in energy companies facing an imminent rate increase. This indicator recorded a historical maximum level of 1,334,440.11 units at the beginning of February.

“He Merval seems to begin to oscillate above US$1,000“, he estimated Personal Investment Portfolio (PPI).

The shares climb up to 7.1%led by Transportadora de Gas del Sur (TGS), followed by Transportadora de Gas del Norte, which rose 5.9%; and Transener, which climbed 4.7%.

Argentine shares on Wall Street

Between the papers of Argentine companies that operate in wall street, highlights the progress of Transportadora de Gas del Sur (+13.1%), from Edenor (+7.2%); and Central Puerto (+5.9%).

Dollar bonds

For their part, the main bonds were trading with an average increase of 2.1%, with which they accumulate an increase of close to 5% so far this month and 43% in 2024, at a time when parities average 52%.

The improvement in assets was reflected in the country risk measured by the JP.Morgan bank, which fell 66 units to 1,293 basis points, its lowest since September 2020 when another base of calculations began after a giant debt swap.

The presidential victory of Javier Milei Last December he changed economic expectations by implementing drastic changes in the management of the country’s finances. “In the framework of this renewed Argentine story that Wall Street is beginning to buy, Global bonds have risen 57% since the runoff (presidential last November)”said GMA Capital.

“Has the debt reached a ceiling? Not if confidence were maintained. Strictly speaking, our yield curve – whose rating is ‘CCC’ – could be seen in another mirror like that of ‘B-‘ markets.”he noted, and estimated that “in that case, reaching IRRs like those of economies as hard hit as Nigeria, Angola or Egypt could unlock additional returns to the current rally of more than 50% in hard currency.”

In the midst of harsh adjustments that hit the purchasing power of the population and increase social discontent, The Government managed to achieve a fiscal surplus, stop an inflationary escalation and accumulate reserves in the Central Bank (BCRA), key indicators for the investor.

Source: Ambito

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