The Buenos Aires stock market climbs to its historical maximum level in pesos on Tuesday due to the legislative support achieved by the Government’s “Bases Law” project, which seeks to apply liberal reforms to the economy.
They fly local actions and the ADRs in Wall Street after the approval of the Bases law in the Chamber of Deputies. Meanwhile, the country risk falls and aims to puncture a key value.
The porteño bag climbs to his historical maximum level in pesos this Tuesday for the legislative support that the bill achieved “Bases Law” of the Government, which seeks to apply liberal reforms to the economy. The index S&P Merval it gains 3.7%, to 1,356,894.02 units.
This index comes from rising 2.24% in Monday’s session and climbing 8.76% in the last three consecutive rounds with an increase in liquidity by arrival of investment funds. On the leader panel, Supervielle advances 5.6%, Transportadora Gas del Sur (4.7%), Macro Bank (4.5%) and Northern Gas Transport (4%). In the opposite direction, they descend Mirgor (-2.1%), Stock Bank (-0.9%) and Telecom Argentina (-0.3%).
Argentine shares on Wall Street
While the Argentine ADRs operate with strong increases of more than 6.6% led by Grupo Financiero Galicia, followed by Grupo Supervielle (5.6%), Banco Macro (4.7%) and BBVA (4.8%). The only losses belong to Despegar (-2.6%) and Bioceres (-0.2%).
“It is possible that Stocks still have room to grow in relative terms regarding bonds. Firstly, the evolution of the macro context will be of vital importance. It will be essential that the Government manages to make the fiscal adjustment sustainable. Secondly, it will require regulatory changes that improve the prospects for business in Argentina. After the approval of the Bases law, the signal is positive. However, in both cases, no scenario can be ruled out and the end is still open“, explained Portfolio Personal Investments (PPI).
Bonds and country risk
In the fixed income segment, dollar bonds they rise up to 4.3% led by Global 2041, Bonar 2038 (1.4%) and Global 2038 (0.5%). The CERs fell up to 4.3%, led by DIP0, TZX27 (-3.5%) and PAP0 (-2.9%). And the dollar linked they go down, with TV24 losing -0.1%.
In that framework, the risk country measured by JPMorgan, it drops 0.5% and stands at 1,202 basis points.
Source: Ambito
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