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Argentine ADRs extend the red on Wall Street and lose more than 4%

Argentine ADRs extend the red on Wall Street and lose more than 4%

Meanwhile, the country risk rises again this holiday Friday above 1,400 units and marks 1,410 points.

Meanwhile, the country risk rises again this holiday Friday above 1,400 units and marks 1,414 points.

In a session marked by the second holiday of the XL weekend and for which there are no operations in the local square, the ADRs of Argentine companies listed on Wall Street they extend the red of the previous session in which they sank up to 8.4%, with banks and energy companies leading the falls.

In this context, the papers of Argentine companies deepen the red and give way again in the last wheel of the New York square. Banking and energy stocks moderate the sharp cut. Telecom Argentina (-4.3%); IRSA (-4.1%); Central Puerto (-3.7%); Transportadora de Gas del Sur (-3.5%) and BBVA (-3.2%). The increase is for Loma Negra (0.7%).

Bonuses

Bonds are also weak and extend the losses of the previous session, in which they cut more than -0.5% in their dollar prices among the main references with foreign legislation and fall by similar percentages in this session. Even though analyzes of potential “upside” scenarios are multiplying among investors in the event of validation of economic normalization that allows convergence towards the returns of emerging markets.

This once again places the country risk above 1,400 units, marking 1,410 points.

In a week out of synchronization in operations with Wall Street due to multiple holidays, in the last round ADRs and dollar bonds appear even weaker, as traders seem more inclined to take a more cautious stance. “This happens after the technical rebound test that was activated the previous week due to the ‘combo’ of positive political and economic news, including the progress of the Bases Law and the fiscal package,” warns economist Gustavo Ber.

And he adds: “Regarding the fact that in Deputies the simple majority necessary to support those fiscal issues relevant to the sustainability of the balance of public accounts would be achieved, attention is redirected towards a possible new program with the IMF that could provide fresh funds for the exit of the stocks”. T

Source: Ambito

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