Has the tremor gone? Dollar bonds jumped to 8% and country risk closed below 1,600 points.
The Argentine stock market has revived after suffering strong collapses in recent days in conditions of internal political and economic uncertainty. dollar bonds recovered and rose in price to 8%, but they ended the week with losses up to almost 11%. Within this framework Country risk dropped below 1600 points.
After Congress voted for pension increases that threaten the government’s balance sheet, Vice President and Senate President Victoria Villarruel called for The upper house will meet next Wednesday to discuss the basic law and the financial package promoted by the ruling party. If the initiatives are approved, they must return to MPs to vote on amendments.
“If the government manages to overcome legislative obstacles and obtain approval of the Basic Law, With the Bank of China situation clearing up and the IMF (International Monetary Fund) Board approving the payout, we may see a recomposition of expectations that stops the bleeding in local securities.“they said from Personal investment portfolio (PPI).
In the coming weeks Argentina must renegotiate the terms or return nearly US$5 billion to China for the exchange agreed to by the previous government.The IMF is expected to approve about US$800 million after reaching an agreement on the eighth revision of the US$44 billion extended credit program.
Dollar bonds and country risk
“The bonds started out neutral, but They grew throughout the round, especially when Piccheto tweeted that he would support the Bases Act. Next week this will be discussed in senators so that we have news from June 12 to 13,” he noted that day. view of the day from La Mesa de IEB.
So the debt hard dollar grew to 8% thanks to Global 2038 and from Global 2029 (+6.6%). However, strong losses of -10.8% were recorded over the week. Bonar 2041. He country at risk which measures JP Morgan It ended at 1,582 basis points.
“We believe that Bond prices will change in the future depending on the progress of the pension formula in MPs what motivates the opposition and what may complicate budget balance“, he calculated Adcap.
In its turn, The BOPREALES index performed mixed, alternating between ups and downs along the curve, and accumulated an average decline of 3% for the week.. On the other hand, the dollar exchange rate today increased by an average of 0.7%, and over the week an increase of 4% has accumulated.
” doubles in turn, they remained unchanged and registered an increase of 0.6% for the week. SNE curve acted as a seller and fell by an average of 0.2%, although TZX28 and TZXD6 They closed positively. At the end of the week, CER debt fell by 0.5% on the short side, but increased by 0.7% on the long side of the curve,” he noted. SBS Group.
Finally, ” Lecaps Today they were able to find a floor and closed with an average gain of 0.4% on the short leg and 1% on the long leg (which accumulates a 4% decline over the week). At closing prices, TNA remained at levels between 41.34% (June) and 65.40% (March),” the same report said.
S&P Merval rose: shares recovered
In this frame The leading stock index, the S&P Merval on the Buenos Aires stock exchange, rose 0.8% after falling 9.4% in the previous three sessions. enterprises by making a profit.
Shares of the leading group rose to 5.1%, led by Northern Gas Transmission Company, Edenor (+4.2%) and Commercial Society Sociedad del Plata (+3.8%).
“Given that we are still waiting for stronger signals to reflect on a sustainable macroeconomic normalization, we believe that caution from an investment perspective should prevail,” – said the SBS group.
From my side, ADRs of Argentine companies operated with most of the losses.