Argentine stocks and bonds soar after Basic Law passed

The market quickly celebrated the approval of the Basic Law and Fiscal Package, voting on which ended this Thursday at 6. Yields on Argentine debt bonds traded abroad reached 3.5% on the so-called “premarket” – operations that occur before the formal opening of quotes.

For example, role YPF, Telecom and the banks of Galicia and Macro They rose by more than 8% and then stabilized at 5–7%.

Most traded bond Global 30, For its part, it reached $56.53 after rising 3.2%. But the rest of the names accompanied: GD35Shares of another favorite jumped 3.70% to $43.53.

Although the approval of the law must now be discussed again in the deputies, since there were articles that have undergone changes, the City believes that This is the first signal the market has been waiting for.after several weeks of bearish sentiment towards Argentine assets.

“We hope that the Senate’s approval of the Basic Law will result in a rally today. To what level? It’s very difficult to pinpoint, and we don’t think it will be as easy as predicting previous highs, but it is certain that could reduce losses caused by the uncertainty of recent weeks.”noted earlier in the consulting firm Outlie.

They added: “We will also have to see how the market processes the changes, especially those made in the budget package, which may cause some recent announcements to end And extend the wait a few more weeks (until this is determined again by the deputies).”

Delphos also sees this confirmation as an opportunity to improve bonuses and country at risk. “We do not rule out that the market will react positively to this news and will continue this week’s upward trendwhich will definitely be combined with dollar depreciation CCL and MEP (a move already hinted at on Wednesday afternoon),” they said. In the previous session, the blue dollar and cash dollar settled lower.

Country risk starts the day around 1484 points. “Today we are looking at dollar bonds as the most attractive sovereign securities in the world. After approaching 1200 points, country risk rose to almost 1600 points and today stands at 1484. We believe these levels of country risk are unreasonable.so we think it’s attractive to bet that it will cut back to at least the 1200 area and as second goal – 1000 points“, they advanced into Delphos.