Actions after the law Bases: which sectors capture the market’s attention with the approval

The Senate approved this Thursday both the Bases law and the fiscal package in its entirety, after a tense day inside and outside Congress. During the session, the Government had to accept modifications, and she was the vice president Victoria Villarruel who was in charge of unlocking the tiebreaker with his vote.

And so, a few hours after the debate concluded, the market you already have your first impressions on Argentine actions that could be promoted after the Government’s political achievement. And it is no wonder, since the official victory in the Senate makes the city’s analysts bet that, as was already seen, the bottom of economic activity last month or that of cement shipments in April, “This step in the Bases law sets the floor of Javier Milei’s political cycle“.

As explained Diego Mendezcorporate analysis team leader Personal Investment Portfolio (PPI) in conversation with Ambitthe performance of equity national in the first part of the year was “sublime”. The analyst explains that the S&P Merval in pesos rose nearly 80%, exceeding accumulated inflation and assuming May inflation close to 5%, while in dollars it rose approximately 37%, overwhelming the main US indices.

Banking and energy sector: to follow closely

Méndez adds that as has become customary, “The energy sector had a lot to do with this relentless growth, but the star of the year was the financial sector, which had been considerably lagging behind“so this sector, mainly now after the Bases law, will have to be followed closely, as it could be a great bet to add to the portfolio.

For Méndez, the Bases Law and the fiscal project would cause “an extremely positive reaction in banking papers, whose behavior has been more reactive to good and bad news. At the same time, we remain optimistic about the energy sector, whose expansion and long-term prospects are currently the most attractive,” concludes the PPI analyst.

However, the investment advisor, Gaston Lentini, slips in statements to this medium that there is not a single sector that benefits. According to his analysis, “the entire stock market should benefit,” although in line with Méndez he highlights “mining and oil sectors“, since the large investments after the Bases law.

A backward and beaten sector under the city’s magnifying glass

15 days ago Lentini had shared a recommendation to his clients for a sector that had been hit during the first part of the year. Well, as Méndez analyzes, “not everything was rosy“. The significant reduction in public works, added to the recession and the increase in construction costs, hit the materials sector hard. However, Lentini recommends keeping an eye on the “very backward construction sector.”

The S&P Merval in search of its maximums

“Actions of Loma, Holcim, Ternium or Aluar are the ones who will benefit indirectly, while that the entire oil value chain,” says Lentini, “will have its own party in this celebration” and warns: “The correction of the S&P Merval” in recent days “was healthy with almost 15%” and warns that from now on and after the Bases law: the Buenos Aires plaza index should “go back to look for the maximums that we saw almost two months ago“.

Santiago Lopez Alfaropresident of Patente de Valores, explains for his part that the approval of the Base law, “was something that the market was eagerly awaiting,” “so we will surely witness a recovery of Argentine assets that had fallen in the last month and a half“.

Alfaro adds that, surely, it is also important for everything that is the oil and mining sector, “but especially oil” such as the companies that operate on the stock market such as: “YPF, Vista, Pampa”, everything that has What to do with the new regime will benefit these actions adds the analyst consulted by this means.

Thus, after the approval of the reforms proposed by the Government and with an inflation figure of between 4 and 5% for May, added to the renewal of the swap with China and the advancement of the Bases law, the investment ecosystem is excited. Well, as Lentini concludes, this means that the Central Bank’s reserves have a new solidity, making sovereign bonds more payable, so a good performance of public debt securities is also expected.