Financial day: a nervous market raised the “cash with liquid” and left the country risk above 2,800 points

Investor distrust prompted the search for the ticket as a hedge.

The nerves in the financial market were exacerbated again this Monday, in a business conference that had a quiet start, but began to reverse the trend at noon.

The free dollar, which came to be negotiated with a drop of four pesos, cut the loss towards the close. And the stock dollarsthat started with a loss of three pesos they began to climb at 3:00 p.m. and broke new records above 300 pesos.

The rumors that had circulated over the weekend on social networks about greater restrictions to operate dollars in the Stock Market they had not had an echo in the operation. But the mood changed after the president Alberto Fernandez blamed those who buy dollars to travel and transfer foreign currency legally for the recent rise of the dollar.

During a ceremony at the Casa Rosada Bicentennial Museum, the president argued that Argentina is not only “a place where tourists buy dollars to travel and make the dollar rise bluenor the place where some speculators with the “contado con liqui” make the dollar rise and it makes us all uneasy”.

“The day started with bonds on the rise and parallels on the downside. They went out to talk… It ends with parallels to the upside and bonds to the downside. Be quiet, don’t talk anymore. Focus on adding rationality on the sidelines and keeping your mouth shut.” Gabriel CaamanoEconomist at Consulting Ledesma.

The trend was reinforced when, at the close of business in the wholesale market, it became known that the Central Bank had to carry out strong sales of USD 130 millionmore than half of the amount operated in the cash segment (spot), with business for USD 251 million. The needs to import energy, for about USD 200 million in the day, consumed 80% of the volume operated.

“In the midst of a climate of caution for possible new restrictionsfinancial dollars remain sustained given that the search for coverage does not loosen, fueled not only by the scenario of ‘more pesos, less dollars’ but also by the acceleration in inflation that generates greater pressure on the nominal value of the economy”, he analyzed Gustavo Berowner of the Ber Studio.

Thus, the “counted with liquidation”which is a reference dollar for companies and which is traded through the purchase and sale of stock assets, resumed the upward trend and was traded at a record 305 pesos through the Global 30 Bond (GD30C). At closing, the “liqui” was agreed at $303.92 and the MEP reached 294.29 pesos.

In “counted with liqui” through the GD30C operated about $3.5 million in ByMA (Argentine Stock Exchanges and Markets), while the business with the MEP dollar climbed above USD 23 million with the GD30C and AL30D.

The “counted with liquid” has climbed 45% since the outflow of private funds invested in Treasury bonds began on June 8

Meanwhile, after four consecutive rises, which led the free dollar at historical maximum prices last Friday, the ticket subtracted two pesos this Monday, to be offered to 291 pesos. The free dollar maintains a rise of 53 pesos or 22.3% so far in July. At noon the green ticket came to be offered at 289 pesos.

The wholesale dollar gained 66 cents on Monday to $128.91 for sale. The currency gap with the free dollar it settled at 125.7%, while with the “counted with liqui” it reached 137 percent.

The nominality of the first half of the year leaves a complex inheritance for the remaining months until December. And the probability that inflation at the end of 2022 will be less than 80% has been reduced considerably in the last two weeks due to price increases and product shortages associated with the tightening of the stocks,” he described. nery persichiniHead of Strategy at GMA Capital.

The BCRA accumulates net sales in the market for some USD 770 million in the course of July

“Unlike other moments in which there was immediate action -albeit lukewarm- after the inflation data, the Central Bank, on this occasion, did not touch the reference interest rate. Instead, at decided to apply financial engineering to advance the elimination of the borders between the monetary authority and the Treasury. That is, the deepening fiscal dominancePersichini added.

Stocks rose, but bonds fell again

On the other hand, securities in dollars, which began recovering 2% on average, according to the reference of the Globals with foreign law, they closed with drop of 2.5% at their lowest prices since their release on the market.

In this aspect, the risk country from JP Morgan, which measures the rate gap between US Treasury bonds and their emerging peers, it advanced 56 units and reached 2,810 points, a record since the debt swap with private creditors in 2020.

Stocks began the week on the rise, in a recomposition of portfolios encouraged by a better external climate and local hedges taken in the face of rising inflation and exchange rate pressures. However, the improvement could not be extended to the sovereign bonds, which had started positive, but were losing strength with the running of the operation and closed in red.

The stock index S&P Merval of the Buenos Aires Stock Exchange gained 1.2%, to 105,441 pointsdriven by the trend of local ADRs listed in New York. The S&P Merval hit a nominal historical record in pesos of 106,433 points in the morning. The benchmark for leading shares recovers 20% in pesos so far in July, to match what was the rise in the implicit dollar of the “cash with liquidation”.

The Wall Street indicators started strongly higher, but turned around and closed in the red. Argentine ADRs and shares traded in dollars in New York rose to 9.3% led by Edenor. They followed Globant (+7.7%), Tenaris (+4.2%) and French Bank (+4.1%).

KEEP READING:

Alberto Fernández targeted those who buy dollars to travel and legally transfer foreign currency abroad
Counted with liquidity in the sights: three negative scenarios for the Argentine economy if restrictions are further increased
Dollar today: the “counted with liqui” reached a record of $305 and the exchange rate gap approached 140%
Markets: Argentine stocks overcame Wall Street volatility and rose as much as 9%
The BCRA sold 130 million dollars in the foreign exchange market, half of the volume operated

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