bonds and ADRs reversed initial gains

After the announcements, hard currency bonds reversed their trend and fell to 3.7% thanks to the Bonar 2035. Bonar 2041 (-2.6%), and Global 2035 (-1.8%) also lead the declines. In that framework, the country risk measured by the JP. Morgan improves 6 points and stands at 2,438 basis points. As for income in pesos, the CER bonds ended the day with the majority of increases led by the TX24 (+1.6%).

“It was an ordinary day without atypical movements in stocks and bonds. If something was loose, it was the bond market and the stocks that were mixed. The dollar followed today’s global trend that is slightly down, in what are Argentine papers . There are no sudden movements as if the market had disapproved or approved measures, because there were no concrete measures“, he told Ámbito Raphael by dayDirector of Proficio Investment.

on shift, Mauro Cognettaexecutive director at Global Focus Investments, analyzed how the market took the appointment of Sergio Massa as head of the Treasury, “It was with good eyes since he is a person with more political support than Batakis”. And about the last few days he said that “this was manifested in the actions that rose strongly, especially in those linked to what is called the ‘red circle’, or the businessmen close to him, such as Vila, Manzano, Mindlin.” And in this regard he emphasized the strong rise in Edenor’s paper.

“Bonds performed well but rose from the underground. The dollar also corrected. We are not oblivious to what is happening abroad either and the peso appreciated in the same way that the Brazilian real and emerging currencies moved,” he said. Cognate and expanded that “last week there was a very good performance at the general level of the financial markets and Argentina accompanied”.

Regarding the announcements of the new Economy Minister, the director of Global Focus Investments said that “everything. Yesterday’s announcements were not entirely convincing. There were no specific questions, they were promises. What does happen is that Massa has a stronger political power. We have to see how the measures take shape over the months.”

S&P Merval and ADRs

The S&P Merval Stock Index remained stable and culminated in the day 120,437.18 basis pointsafter improving 1.4% the day before. Thus, in the leading panel, the main increases were for Sociedad Comercial del Plata (+4.6%), Transener (+4.5%), and Edenor (+3.4%). For their part, banks Macro (-1.5%), and BBVA (-1.4%), led the losses.

As to Argentine papers listed on Wall Street closed mixed. The gains were led by the shares of Globant (+5.3%), Despegar (+2.2) and Corporación América (+1.2%). The largest corresponded to Tenaris with 4.4%, and the French and Macro banks with 2.6%. In this session, Mercado Libre took all eyes with a rise of 6% after presenting a record balance.

This day, a report from Goldman Sachs pointed out that “Argentina needs a more conventional and disciplined policy mix to rebalance the economy, And that means, first and foremost, establishing a credible path to structural fiscal consolidation and an exchange rate that can reflect the macro fundamentals that would require a bold reduction in financial repression/controls.”

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