Financial day: the stock market rose 6%, broke another record and confirmed market support for economic policy

Waiting for possible approval Basic Law in Congress and new depreciation benchmark set by the Central Bank on Thursday catapulted the stock price this Friday Argentina, in the face of institutional buying that seeks to gain a few points from inflation, and with further impetus for Wall Street indexes to rise to 2%.

As part of this optimism, the stock market benchmark S&P Merval from Buenos Aires rose by 6% to a nominal record close of 1,452,002 points.. In 2024, a group of leading stocks will record a 56.2% gain in pesos and 35.6% in dollars “counts with liquidation.”

Among the shares and ADRs of Argentine companies that trade in dollars in New York, bank profits stood out. France (+9.3%), Galicia (+7.8%) and Macro (+7.3%). Mercado Libre rose in price by 8.3% after submitting your balance sheet corresponding to the first quarter of the year.

Dollar bonds rose an average of 0.3%, while the peso-denominated electronic open market (MAE) rose an average of 0.5%. He country at risk JP Morgan advances Argentina by seven basis points 1243 units at 17:30

half the sanction of the Basic Law This week’s progress in Congress gives the government breathing space and encourages speculation that the Senate will approve a sweeping change in the rules of the economy pushed by the ruling party through its promised deregulation.

The BCRA cut the monetary policy rate to a nominal 50% per annum, the third straight cut in less than a month and the fifth since the Libertarian measures were adopted. Javier Miley He took office as president last December when the rate stood at 133 percent.

“We believe that the main reason for this new decline will be that the economic group will not feel comfortable with the amount of pesos that are in the economy to liquidate inventories,” he said. Personal investment portfolio. “Given the strong slowdown in inflation, the BCRA is committed to keeping the real rate in negative territory,” he assessed.

The interest rate paid by banks on Friday on term placements was cut to an average nominal level of 40%, well below annual inflation estimated by analysts.

Trading volume on the wholesale market this Friday remained weak: $297.6 million in the cash segment, almost the same as Thursday. BCRA won US$144 million for its foreign exchange intervention – 48.4% of the total amount of negotiations. On the other side, International reserves increased by $184 million.To 28.374 million dollars.

“It is worth remembering that such accumulation is only possible if import payments amounting to more than US$11 billion are deferred for the coming months,” they pointed out from Adcap financial group.

He free dollar in the morning reversed the fall by five pesos and closed at $1040 on sale third day in a row. With the wholesale dollar up 3.50 pesos, or 0.4%, over four business cycles of the week to $878.50, the currency gap narrowed to 18.4%.

Analysts estimate that the rate cut confirms that the BCRA will maintain the current rate. creeping peg or a gradual devaluation, despite the relative lag of the exchange rate, which some experts point to, as the official dollar and alternative quotations rose less than 10% in 2024, against the backdrop of inflation that exceeded 60 percent.

“Are we facing an appreciation in the exchange rate or a change in relative prices where Argentina is worth a lot in dollars given its financial and regulatory structure?” President Miley asked himself on his social media account “X” following speculation about the delay.