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Argentine stocks and bonds fell by up to 10% and country risk has already exceeded 1,500 points after government announcements

Argentine stocks and bonds fell by up to 10% and country risk has already exceeded 1,500 points after government announcements
Argentine stocks and bonds fell by up to 10% and country risk has already exceeded 1,500 points after government announcements

In this context, the dollar bonds that lost the most were the Bonar 2041 (-4.8%), Global 2046 (-4.1%), and Global 2029 (-3.6%). Due to these declines, the country risk, measured by JP Morgan, rose 50 units (+3.4%) to 1,506 basis points.

“The expectation was that they would rise much more with the release of the Bases law, but I think that There are still many things to fix“, said to Ambit an experienced market trader.

However, he added: “I don’t think these are things to be alarmed about, I understand that so far this year we have had very significant increases due to the change of government, but In the last two months they have been moving sideways, we are a few days away from the payment of the coupons that were already announced by the market.“.

“It seems to me that the expectation of a later exit from the currency controls weighed more than the sign of normalisation implicit in the monetary announcements. That, or a lot, was not understood from the latter and they are waiting for more details,” he pointed the economist Gabriel Caamaño.

It refers to the announcement he made, Luis Caputo, In a press conference he gave this Friday together with the president of the Central Bank (BCRA), Santiago Bausili, in which he referred to what he called “the second stage of the stabilization plan.” In substance, The total elimination of the remunerated liabilities of the BCRA will be sought, which will be transferred to the Treasury, making the Government’s fiscal commitment more demanding.The head of the Treasury Palace stated that These measures “will have a positive impact on people because they reinforce disinflation.”

Argentine stocks on Wall Street

As to Argentine stocks operating abroad, these sank up to 9.6%led by bank stocks. Those that fell the most were those of Supervielle (-9.6%), Galicia Financial Group (-9.5%); Edenor (-8.7%), and Macro Bank (-7.6%).

At the local level, the S&P Merval index fell 1% to 1,594,732,830 unitsafter having ended June with a red of 2.4%.

Bank stocks were the main losers of the day: Supervielle Group (-6.5%); Macro Bank (-5.5%); BBVA Bank (-4.8%) and Galicia Bank (-4.4%).

Source: Ambito

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