S&P Merval shares fell by up to 9.5%, dragged down by the sharp fall of the dollar CCL

Dragged down by the sharp drop in the CCL dollar, the Buenos Aires stock exchange extended its bad streak This Tuesday, July 30, with shares falling by up to more than 9%, while, the dollar bonds quoted mixed. Argentine stocks operating in Wall Street Most of them registered losses, but with less intensity because in that market the main indices ended mixed. This is an x-ray of the doubts that still persist in the market regarding the economic plan that has already begun its phase 2.

The leading index S&P Merval sank 4.7% to 1,420,281.36 units, with shares that yielded up to 9.5% led by the company Commercial Society of the Silver. On Monday, The local market fell 3.9% dragged down by the sharp fall of the oil company YPF. In the leading panel, the most important losses this Tuesday were, in addition to COME, BYMA (-5.7%), Central Port (-5.6%); and Southern Gas Transporter (-5.4%)

For their part, the Argentine stocks operating in Wall Street were quoted with a majority of declines, led by Pampa Energy (-3%), Southern Gas Transporter (-2.9%); and Take off (-2.1%). Meanwhile, the only stocks that rose were those of Free market (+0.4%), BBVA (+0.4%); and IRSA (+0.3%).

All eyes were on the foreign exchange market, where Dollars fell sharply (CCL and MEP around $1,270)given the incipient arrival of foreign currency from a money laundering, which the Government enabled to recover financial liquidity. In turn, the Central Bank (BCRA) continues Market intervention with the sale of foreign currency to reduce the gapto the detriment of its own international reserves.

“Policymakers appear to be preparing the ground for a unified exchange rate in the future, although the accumulation of foreign exchange reserves will probably stagnate.”Morgan Stanley said in a report. “In the coming months, conditions for currency unification could improve by the fourth quarter of 2024.”as tax incentives boost inflows. With cheap valuations, we suggest holding long bonds,” he added.

In turn, in the informal market, The blue fell 2.1% to $1,385, the lowest level in a month, narrowing the gap to 48.5% compared to the wholesale market, which was almost stable at 932 units.

Recent changes promoted by the BCRA included the revocation of restrictions on operating “CCL” and “MEP” for individuals who had received State aid during the pandemic or who have a subsidy for consumption in public services.

“This dynamic (of appreciation) could be due in the context of the money laundering measure launched by the Government and approved in Congress weeks agoand regulated a few days ago, so we will closely follow the dynamics of alternative exchange rates during these days,” he said. SBS Group. “In any case, we remember that, Despite this specific dynamic, the market’s eye on foreign exchange and external accounts matters will also continue to be on the BCRA’s net reserve position.which continue to decline,” he added.

The BCRA has accumulated four negative rounds for its reserves with sales of US$260 million.

Bonds and country risk

In the fixed-income segment, for its part, the dollar bonds closed unevenly, with losses led by the Global 2038 (-2.2%), and increases led by the Bonar 2029 (+1.7%), followed by the Global 2035, 2046 with 0.2%. In this context, the country risk, measured by JP Morgan, rose slightly to 1,560 basic points.

“The bond market has been moving sideways for several days now, always waiting for good news. As the market settles down, we may have a more general rise, but for now The reality is that everyone is waiting, not only in the local market, but also abroad, taking into account that in September the FED could lower rates and that could help a little more.”he told Ambito, Leonardo Svirskystock exchange operator.

The BOPREALES They operated mixed, while they closed higher in the short term, in the longer term they fell, and volume was concentrated in series 3 (during this round, series 2 became ex-coupon, which amortizes 8.33%). On the other hand, Dollar-linked sovereigns continued with little activity and closed mixedwhile the dual TDG24 remained unchanged.

In the segment CERafter several days in red, this Tuesday Demand appeared throughout the curvewhich ended with average increases of 1.5% (not so the long bonds of the 2005 exchange that ended with average falls of 2%). Finally, the Lecaps had slight increases in the longest part of the curve. They remained with yields between 39.20% TNA (16/08) and 58.17% TNA (31/03)SBS Group reported.