The Buenos Aires stock market drops for the fourth consecutive day this Friday, May 10, something it has suffered since mid-February. facing a waiting period imposed by investors awaiting treatment of the Bases law in the Senate.
In the midst of investor caution, the leading stock index S&P Merval lost 1.1%, after losing 4.1% in the previous three trading days and setting a record level in pesos of 1,505,718.34 points on Tuesday.
The shares of the oil company YPF lost 5% after the presentation of its balance sheet for the first quarter of 2024 with net profit of US$657 million and income of US$4,310 million.
On the New York Stock Exchange, meanwhile, the ADRs of Argentine companies operate unevenly. The declines are led by YPF (-5.2%); Pampa Energía (-3.1%); and Central Puerto (-2.5%). On the contrary, the advances are led by Telecom (+2%); Loma Negra (+2%); and IRSA (+1.7%).
Within the framework of the debate in committee in the Senate, where the ruling party seeks to obtain an opinion to debate the Bases law and the fiscal package in the Upper House, It was decided to call an interim period until next week, opening the possibility of obtaining a favorable support.
“In the medium term, if lower inflation is achieved, and economic policy allows for greater private activity, the necessary conditions would be met for sustainable economic growth, which would be supported by more bank financing,” said Jorge Day of the Mediterranean Foundation.
After the Government offered to pay the debt with energy generators with bonds, the International Monetary Fund (IMF), the United States Embassy, the Department of State and the Department of Energy andThey are worried about the “breakdown of contracts.” This was stated by the president of AES Argentina, Martín Genesio, in the midst of the controversy between the Government and the electricity generators after the Ministry of Energy implemented the payment of the debt for subsidies with the AE38 bond, which implies a 50% reduction. %, according to the companies.
Bonds and country risk
In turn, the sovereign debt nominated in dollars They fell to 2.2%, with a country risk measured by the JP.Morgan bank that rose seven units to 1,270 basis points.
“Exchange policy leads us to an appreciation of the peso, which ends up favoring instruments in pesos that adjust for inflation in the market,” said analyst Salvador Di Stefano.
The day before, the BCRA placed 1,709 million dollars in its seventh tender for ‘Bopreal’ bonds intended to settle debts with importers and which can be used by legal entities that would like to distribute profits and/or dividends to non-resident shareholders. “Offers for 69 million dollars in nominal value were received from companies with debts for imports and 1,640 million for transfer of profits,” the BCRA reported.
Source: Ambito
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