Bonds reverse negative trend and rise more than 4%, ADRs also show positive trend

Some bonds may show strong corrections, which are expected during this session when these Argentine debt instruments will cut their coupons. However, some voices consider that the initial drop is somewhat exaggerated.


Dollar-denominated bonds reversed the negative trend with which they started the round awaiting the coupon payment of these Argentine debt instruments. However, some voices considered that the initial drop was somewhat exaggerated. Meanwhile, the shares of Argentine companies listed on Wall Street are mostly in the red, in line with the local market, where the S&P Merval is also falling.

Thus the heaviest losses are for the Global 2041 with -3.2% and for the Bonar 2041 which cuts -1.5%. The increases are for the Global 2038 which climbs 4.2%, the 2029 Bonar climbs 1.2% and the Global2030 with 1.1%. While the country risk remains above 1,500 units at 1,507 points.

For Eric Paniaguaan economist at EPyCA Consultora, said that “it is necessary to have a slightly more moderate view this week. It is possible that bonds will fluctuate slightly upwards, particularly after Stutzenegger’s appointment, but I do not believe that there will be an excessive rush for Argentine assets. I see that as unlikely.”

On the other hand, Paniagua recalls that tomorrow is a holiday, so today the local market will surely move with very little volume, but the potential payment, the probable, very probable payment of capital and interest that is coming in global bonds will generally reaffirm the position that Argentina will pay, “And with that vision it is also possible that bonds move in an upward trend, without, and I insist again, without there being an excessive vortex”.

ADRs on Wall Street

The ADRs also reversed the negative trend with which they opened the session and now show a majority of increases. The increases are for Banco Macro (1.8%); Banco Supervielle (1.5%); and YPF (1.5%). The decreases are for Tenaris (-1.2%) and Central Puerto (-1.1%).

In the local market, Sociedad Comercial del Plata (4.4%); Pampa Energía (+1.45%) and YPF (1.4%) are back on the rise. The declines are for BYMA (-2.3%) and IRSA (-1.2%).

Markets: What’s Next and What’s Happening

This Wednesday, July 10, the AL30 bond, one of the most popular among investors, will pay interest and capital. This is one of the most important events of the week that is being discussed at the tables at this time. Also, the arrival of Federico Sturzenegger generates expectations in the markets, for his promise to deregulate the entire economy and, on the other hand, this Monday the promulgation of the Bases law and the fiscal package, which had been long awaited, was finally published in the Official Gazette.

“We prepare for the Amortization of the ‘Bonar 2030’ and other bonds for more than US$2.5 billionguaranteed by the Government and which speculates with a high level of reinvestment due to the future opportunities expressed by Argentine fixed income,” commented a financial advisor from a Buenos Aires brokerage.

Another element that has an impact on the markets this Monday is the publication of a moratorium on customs, tax and social security debts, which is accompanied by an asset laundering programme that the Government had promised and with very beneficial conditions for those who have undeclared assets.

Note in development.-

Source: Ambito

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