The Government announced over the weekend that will stop expanding its monetary base. At the same time, They confirmed that they will begin to intervene in the market: every time they issue to buy dollars in the MULCthese pesos will be sterilized with the sale of dollars in the Contado con Liquidación (CCL) stock market. This decision It was not well received by the marketgiven that Argentine financial assets fell sharply.
“The dollar fell, but the market did not take Caputo’s announcements at the weekend well. The economic team announced that the Central Bank will sterilize the pesos issued by the purchase of reserves in the foreign exchange market by selling foreign currency in the CCL/MEP market, in order to close the last channel of monetary issuance. In practice, this results in a mechanism for intervention in the exchange rate gap.“, they explained from PPI.
This is how the operation in the square went during this day: The BCRA acquired US$36 millionwhich would imply the issuance of money for $33.225 billion (at the official exchange rate $922.92). Given the new scheme, this purchase implies that the Government has to intervene in the parallel market selling US$25 million to absorb those pesos that it issued, and this left a net balance in purchases of US$11 million.
The losers of the day
“The weighted average price of hard dollar sovereign debt fell 2.1% to US$44.9. Continuing with the weight curve, CER-adjustable bonds had negative variations throughout the entire curvewith falls of up to 5.1%. In the same sense, with the compression of the gap, Dollar-linked bonds closed in the red between 3% and 4.8%“, they explained from PPI.
Thus, the declines in dollar-denominated securities were led by the Global 2038 (-4.3%), Global 2035 (-3.2%) and the Bonar 2041 (-3.3%). In this context, Country risk measured by JPMorgan climbed 2.9% to 1,555 basis pointsthe highest level since June 7.
As for the bonds in pesosthe debt tied to CER fell to 4.7% due to the TX26followed by PAP0 (-4.1%), the PARP (-2.9%), and the TZX27 (-2.9%). The dollar linkedmeanwhile, fell by up to 4.8%, led by the TZV25.
“Among the losers were the shares of Merval as Galicia Bank (-12.9%), Macro Bank (-12.1%), Pampa Energy (-11.71%) and YPF (-9.8%). Also the Cedears that fell, like Starbucks (-eleven%), Adecoagro (-10%), Procter & Gamble (-9.8%), Free market (-9.7%), Amazon (-9.3%)”, he told Ambitthe analyst Gabriel Bagattini, founder of Finance with Gabriel.
The S&P Merval sank 12.2% to 1,504,983.980 points; measured in foreign currency, it lost 4.1% to 1,151.51 points. Among the stocks that fell the most were also Ternium (-fifteen%), Transener (-14%), Southern Gas Transporter (-13.2%), Telecom (-13.1%), and Supervielle Bank (-13%).
For their part, the Bopreales They were also heavy and fell by an average of 25 cents; the concentration of volume occurred in series 3, he specified. SBS Group.
The winners of the day
“Among the winners were corporate bonds (ONs) that had positive returns in dollars such as MRCYD (Mediterranean Generation) +5.8%, LECAD (Albanesi) +2.9% and RCCJD (Arcor) +2%,” Bagattini added.
For their part, the Lecaps generally operated takers and, except for the September period, rose by an average of 0.2% across the curve“At closing prices, they were yielding between 39.32% APR (26/07) and 60.64% APR (31/03),” reported Grupo SBS. “Duals were positive with increases of between 0.4% (TDG24) and 2.5% (TDE25)”PPI said.
Source: Ambito
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