In May, equities had a very good performance in the local stock market but some uncertainties coming from the National Government could put the positive rally in check.
A strong bullish rally was evident in May in the S&P Merval, with shares climbing to almost 50%.
Argentine News
A strong bullish rally was evident in May in the S&P Merval, with papers climbing up to almost 50%. However, for June, analysts’ perspectives maintain that it is important to take precautions. The implementation of policies such as Ley Bases will be key for the market, as will certain economic indicators that still mark the recession without recovery. Possible profit-taking also appears on the scene: what to do in that context?
First, let’s see where we come from. The stock index leader S&P Merval climbed 24.9% in May and stood at 1,653,728.63 units. Measured in foreign currency, meanwhile, it rose 9.4% to 1,325.93 points. It should be noted that the actions of the leading panel that advanced the most in the month were the financial ones with Silver Commercial Society to the head that flew 47%and they followed him closely Banco Macro (+46.6%), BBVA bank (+33.7), Supervielle (+31%), and Telecom (+30.1%).
For the analyst Daniel Osinaga“from the technical analysis we are ending a wave 3, in my opinion, There isn’t much fuel left for this movement.it is time to start unloading positions little by little”, and he expanded in dialogue with Ambit that in this context, “I prefer bonuses over equity“.
For its part, Alejandro Bianchifounder of InvestmentAdvisor.comfor his part, said that Merval sees the S&P as “a little expensive”. “It seems to me that a few weeks ago a sort of ceiling was reached there at 1400 points and profit-taking began in the banking sector“, he expressed.
Among the news that weighs on the performance of equities is, according to the expert, the news that the swap with China will not be renewed, the delay of the Bases Law, and the drop in economic growth. “The market is digesting the context and that is not consistent with a Merval so high at 1400 points. I see a possible profit taking or cut to at least 1000 or maybe 900 points“Bianchi said.
Equity: which sectors to bet on
From Invest in the Stock Market (IEB) put together a strategy with a strong base of companies belonging to the Oil & Gas because “they continue to be one of the sectors with the best fundamentals and future growth prospects.” Within this sector they chose: Pampa Energía (PAMP), YPF (YPFD), Transportadora de Gas del Sur (TGSU2) and Vista Energy (VIST).
“Continuing on the weighting scale, we see it appropriate to maintain companies that can benefit from an increase in rates, within which we like Central Puerto (CEPU) and Transportadora de Gas del Norte (TGNO4)“, they expanded and on the side of the banking sector, they were defined by Macro Bank (BMA)followed by Supervielle Group (SUPV).
Within the area of materials they mentioned as attractive: Ternium Argentina (TXAR) and Loma Negra (KNOLL). Finally, regarding the non-banking financial sector, they elected Argentine Stock Exchanges and Markets (BYMA) because “it has been able to show defensiveness and a great capacity to capture the growth that the Argentine capital market has been experiencing.”
“Forward, the expectation remains optimistic for the sector equity which in May outperformed bonds in profitability and the variable that will closely follow is the political climatewhere the market expects greater signals from the Government”, they stated from Adcap and it was confirmed that They remain “optimistic with the energy sector, highlighting the roles of YPF and VISTA.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
