The market continues to analyse the new government measures, focusing on reserves and new questions about the coming months. Thus, the country risk is again approaching 1,600 points.
ADRs also remain negative, conditioned by the poor mood on Wall Street.
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The market prolongs the caution among investors due to the effects of a harsh monetary adjustment prepared with the idea of strengthening the currency as a policy to attack inflation. From the Central Bank (BCRA) Coordination with the Treasury is completed transfer of repurchase agreements paid by Liquidity Fiscal Letters (LEFI) under the commitment to zero emissions, along with foreign exchange intervention.
This mechanism seeks to absorb idle pesos to the detriment of the recovery of international reserves, which opened questions in the last rounds between savers and drove the negative trend on assets. “The government is closing all the channels for issuing pesos, which will lead to the need to sell dollars for current needs in the short term,” said consultant Salvador Di Stefano in a televised statement.
In this context, the dollar bonds extend negative streak with drops of up to 4.2% for Global 2046, Bonar 2041 (-1.6%) and Global 2041 (-1.5%). Thus, the risk country measured by JPMorgan rises 0.8% to 1,590 basis points.
S&P Merval and ADRs
In early business, the S&P Merval falls 2.2% to 1,551,668.55 units, after falling a firm 3.28% in Wednesday’s session due to various sales and ADR sales in New York. Shares fell by up to 5.7% led by Sociedad Comercial del Plata, Central Puerto (-5%), Supervielle (-4.6%) and Ternium (-4.1%). The only two increases belong to Cablevisión Holding (0.8%) and Banco de Valores (0.5%).
For its part, Argentine papers listed on Wall Street fell by 3.2% led by Banco Supervielle, Loma Negra (-3.1%) and BBVA (3%). Globant SA (1.3%) and Ternium (0.3%) stood out.
Source: Ambito
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