The Buenos Aires stock market rebounded This Friday, just like Argentine dollar bonds and stocks on Wall Street, hence he risk country He went down and walked away from the 1,600 basis points. This was due to bargain buying after recent sharp declines due to the dismantling of positions, despite economic announcements that sought to reassure the market.
In the fixed income segment, the dollar bonds They rebounded to almost 3%led by the Global 2038 (+2.8%), followed by Global 2035 (+2%) and the Bonar 2038 (+1.6%). Along these lines, the risk country measured by JPMorgan gave up 1.7% to 1,562 basic points.
Javier Milei’s government recently began the so-called second stage of its stabilization plan under a zero-emission program and the Central Bank (BCRA) relaxed regulations for the payment of imports and settlements of exports, while eliminating exchange restrictions on the way to an expected release of the exchange rate restrictions.
“Some traders are looking to continue to be more inclined towards bargain buying after the strong punishment of recent times,” said economist Gustavo Ber.
Market attention is focused on the BCRA’s ability to accumulate international reserves in the face of important maturities at a time when the level of export settlements is beginning to decline due to seasonal issues.
“The balance of the BCRA and reserves continue to be the center of attention on a daily basis, especially when they have returned to negative territory in net terms even though this evolution was anticipated during this quarter,” said Ber.
The BCRA had to sell 92 million dollars to meet market needs, which meant it lost 34 million in the week and now has only 88 million dollars in the month. Analysts and traders estimate that the BCRA’s net international reserves are in negative territory, around 6 billion dollars.
“Net reserves are negative by 6.471 billion dollars, considering as liabilities government deposits for 1.372 billion dollars and maturities of (bonds) ‘Bopreal’ at 12 months for 2.173 billion dollars,” Portfolio Personal Inversiones explained. It added that “negative net reserves imply that the BCRA has liabilities due at 12 months in dollars greater than its assets, but not that it does not have dollars to intervene.”
S&P Merval and ADRs
In the local panel, the leading index S&P Merval rebounded just 0.2% to 1,542,021.75 units, after sinking 6% in the last two sessions and closed the week in the red.
“For now, the Argentine stock market index, the Merval, has been reaching historic highs around the 1,700,000 level and although it has retreated to the 1,500,000 level, where we can find the 55-day exponential moving average, the index is still in an upward trend and could continue to rise,” estimated Alexander Londoño of ActivTrades.
The stocks that rose the most were those of Commercial Society of the Silver (+3%), Macro Bank (+1.9%), Bank of Securities (+1.8%) and Transener (+1.6%), while those that fell the most were those of Northern Gas Transporter (-2.2%), Mirgor (-1.1%) and Southern Gas Transporter (-1.1%).
Meanwhile, ADRs rose by up to 2.1% on Wall Street. Leading the rally was Galicia Financial Groupfollowed by Macro Bank. that advanced 2.1% and IRSAwhich recorded an increase of 1.9%.
Source: Ambito
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