The financial market closed with disparity this Thursday after the Minister of Economy will announce that negotiations with the International Monetary Fund (IMF) are for a new credit of 20,000 million dollars, in times of exchange pressure and uncertainty of investors.
After a bullish start, the S&P Merval finally retreated a 1.1%both in pesos and dollars. In local currency, he closed in 2,412,081.50 pointswhile in currencies it was located in 1,857.20 points.
Among the actions with greater falls were highlighted Supervielle Group (-3.7%), Edenor (-3.2%), Macro Bank (-3.2%) and Galicia Financial Group (-2.3%). On the side of the rises, they stood out Byma (+3%), Metrogas (+2.8%) and Cresud (+2%)among others.
The papers quoted on Wall Street too they operated with a majority of falls, up to 3.4%, led by Grupo Supervielle, Banco Macro (-3.2%) and Grupo Financiero Galicia (-2.3%). Meanwhile, the increases were represented by Cresud (1.9%), free market (1%) and YPF (0.3%).
Insteadthe dollar bonds climbed up to 1.5%headed by the Global 2046, followed by the Global 2030 (+0.7%) and the Global 2041 (+0.5%). In that framework, the country risk, the index that measures the JP Morgan He closed with a decrease from 10 units to 759 basic points.
The Minister of Economy, Luis Caputo, indicated before business men who It will request additional money for free availability in other international organizations and that these agreements will allow the gross reserves of the BCRA to 50,000 million dollars, from the current 26,250 million. These additional treatments are with the World Bank (BM), the Inter -American Development Bank (IDB) and the Development Bank of Latin America and the Caribbean (CAF), said the minister
Julie KozackFMI spokeswoman, she went out to talk after the announcement and although she praised the stabilization program of Argentina, considering it “really impressive,” did not confirm the amount of US $20 billion announced by the Government. What he said is that the disbursement It will be “considerable” and that could be in stages.
Another aspect to consider in this wheel, which showed disparate movements throughout the day, is that the market had probably already discounted an agreement by U $20,000 millionafter Bloomberg advanced this figure last week. In addition, there were some details in relation to the exchange policy that were not dissipated.
“I think that today (Thursday) what was done was to announce an amount of an agreement that was not yet agreed (with the IMF), for the need to calm what we are seeing these days with the reserves” From the Central Bank (BCRA), said economist Christian Buter.
The domestic markets faced hectic days when the fears of an eventual devaluation with the projected end of stocks and political tensions, which they sold to the BCRA US $ 1,445 million Only in the last nine sessions.
What was the reaction of the City operators after Luis Caputo’s announcement
The Government of Javier Milei ensures that the new agreement will reinforce the BCRA accounts and allow the country to begin to undo the current exchange restrictions that hinder businesses and investment.
“We consider that the dynamics we saw in the last week – break and future dollar and sales of the BCRA – could extend until it is clarified or set clues about how the exchange scheme will be under the agreement with the IMF”Portfolio Personal Inversiones reported (PPI).
Damián Palais, Financial Capital Advisor, highlighted that “Argentina today has debt to the IMF, so it starts from the loan will go to pay or postpone the payments in force for later. Now, there will be a part of the loan, less than half, which will swell reserves. That, on the one hand, obviously, calm down to the market, more than anything the bond market, because when you swell reservations the payment capacity of the sovereign bonds, of Argentine debt.”
After Caputo’s announcement on a possible agreement with the IMF for US $ 20,000 million“Sovereign bonds, particularly the GD41, continue to stand out as one of the best options. This bonus has a higher expected return on a scenario in which the Argentine curve conveys at levels similar to those of comparable countries, “said Alejo Rivas, strategist in Balanz. “This scenario would be closer if you advance in the agreement and in the gradual lifting of the capital controls, which would work as a positive catalyst. Likewise, for those who want He added.
Source: Ambito
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