S&P Merval rises for fifth straight round; Argentina shares jump nearly 7% on Wall Street

The Buenos Aires stock market is closed. fifth day in a row on Thursday, July 11, with country risk declining for the fourth day in a row. This comes as the government tries to dispel the clouds with New letter According to which will transfer the debt from the Central Bank (BCRA) to the treasury Treasure, on the way to expected exchange rate appreciation.

In this context Leading S&P Merval Index Buenos Aires stock market rises 0.9%, To 1,705,676,490 units. The leading stocks that rose the most were: Mirgor (+6%), IRSA (+5.4%), Black Hill (+5.2%).

IN Wall Streetin its turn, Argentina’s stocks were mixed, with Globant (+5.8%) and banks falling in particular during the round.

Among ADRs, ADRs have made the greatest progress Globant (+6.9%), Edenor (+6%), and Pampa Energy (+5.6%). On the other hand, the biggest decline was seen in the securities Galicia Financial Group (-5.1%), Macro Bank (-4.5%) and Banco Supervielle (-4.3%).

Bonds and Country Risk

dollar bonds under the direction of Global 2029 and it follows Global 2041 (+2%) and Bonar 2038 (+1.2%). Meanwhile, Global 2035 (-1.5%), Bonar 2030 (-0.6%),

In this context country of risk falls by 0.5% to 1469 basis points measured JP Morgan.

BCRA Begins Debt Swap with Treasury

“We are in recovery stage, leaving intensive care (…) The free exchange rate will approach the official one due to the deficit problem, and this will be the best time to get out of the “traps” (restrictions),” Economy Minister Luis Caputo said in a radio statement.

In the same time, The Treasury was allowed to exchange BCRA government debt instruments for so-called “liquidity fiscal letters” (Lefis).which will be capitalized daily, although they can only be agreed upon between the monetary authority and the banks of the national system.

The parties recently announced that BCRA remuneration obligations will be transferred to the Treasury. as part of a general reorganization of the financial system that has caused a massive dismantling of banks’ positions in favor of liquidity, and this has contributed to further pressure on the prevailing demand for dollars as portfolio coverage. The BCRA base rate is currently 40% per annum.

We are waiting for inflation data

Miley signed a national development plan with provincial governors this week in an effort to secure support for his orthodox economic agenda, which is dragging on runaway inflation and rising poverty.

The consumer price index (CPI) in June would have recorded a 5.1% decline.According to the Reuters poll median, the day before it became official, Caputo was hopeful that “I hope tomorrow (Friday) inflation will be below 5%. Core inflation should start at 3.”

The interbank peso remained unchanged. controlled devaluation of about 0.11% to 920 per dollar, while BCRA finds it difficult to add reserves, while the currency on the influential marginal market (the “blue”) is operating at its historical low of 1450 units, implying a 57.6% jump in the currency gap.