The fall of Mercado Libre happens in tune with the collapse of the Nasdaq technology index on Wall Street, which fell 3.74%. Shares of Meta Platforms, the parent of Facebook, sank more than 26% after reporting disappointing forecasts that triggered a wave of losses in other stocks such as Twitter, Pinterest and Snapchat.
For its part, The leading stock index S&P Merval extended Wednesday’s downtrend and lost 1.8% to 88,091.28 after falling 1.9% in the previous session.
In the leading panel, the greatest decreases were led by the papers of YPF (-4.4%), Central Puerto (-3.8%) and Grupo Financiero Galicia (-2.7%). And on the other hand, the rises of Edenor (+4%), Cablevisión (+3.1%) and Cresud (+0.9%) stood out.
The market operated cautiously while waiting for what might happen in Congress with Argentina’s agreement with the IMF. The principle of understanding has a duration of two and a half years, involves a “gradual” reduction of the fiscal deficit and forecasts that international reserves will grow by US$5 billion in 2022.
But nevertheless, This agreement created political tensions in the ruling party that culminated in the resignation of Máximo Kirchner as head of the FdT bloc in the Chamber of Deputies., who disagreed with the understanding reached by the national administration. Finally, Germán Martínez was appointed to replace him by President Alberto Fernández.
“The strength of the agreement did not end up eliminating all doubts, although the signs of the event are totally positive, caution before acting is still present because there are still economic unknowns to resolve and an agreement to finalize”explained Javier Rava, director at Rava Bursátil.
For its part, the SBS Group assured that “The repercussions of Máximo Kirchner’s resignation from the presidency of his bloc in the Chamber of Deputies continue, while the government intends to have the agreement with the IMF closed by March.”
In his analysis, Gustavo Ber maintained that “investors hope to have more clarity about the state of the coalition of the ruling party, which is crucial not only to manage the almost two years of mandate ahead but also to advance in the principle of agreement with the IMF. This is because not only legislative approval is required, but broad political support will also be needed to move forward with the implementation of the economic roadmap, which includes serious commitments to fiscal and monetary goals.”
Less than a week after announcing the understanding with the IMF, President Alberto Fernández said during his visit to Russia that Argentina must abandon its “dependence” on the United States and the International Monetary Fund (IMF).
Argentine bonds closed with a majority of losses in a small and selective business market, while the risk country prepared by the JP Morgan bank rises 0.9% to 1,755 basic points.
At fixed income segment, sovereign bonds in dollars lost up to 2.5% led by the Bonar 2030. The Bonar 2029 (-2.2%), and the Global 2035 (-1.9%) also fell. However, the rise in Global 2046 (+4.3%) stood out.
Source: Ambito
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