The shares of Argentine companies on Wall Street advanced more than 10% on Friday, while the prices of bonds in dollars marked increases of US$2.5 on average throughout the curve, after the announcement of an understanding between the Government and the Fund International Monetary Fund (IMF).
Analysts consulted by Télam described the agreement as “positive” and agreed that the novelty was what boosted the price of Argentine assets, both in the local stock market, Wall Street and in public securities.
The first to announce the agreement was President Alberto Fernández and minutes later the IMF did the same through a press release.
In this context, the papers of Argentine firms in New York closed the day with the majority of positive results led by Banco Francés (10.2%); Galicia Financial Group (9.2%); Macro Bank (9.1%); IRSA Commercial Properties (7.8%); and Central Port (7.6%).
The only drops in the session corresponded to Tenaris (-1.2%); and Corporación América (-0.2%).
In the fixed income segment, bonds in dollars advanced US$2.5 on average throughout the curve, while securities in pesos adjusted by CER ended the session with increases of 0.1% on average throughout the curve.
In this framework, the country risk recorded a drop of 3.4%, to stand at 1,841 basic points.
In the Buenos Aires square, the rises of the leading shares were marked by Transportadora de Gas del Norte (7.66%); BYMA (5.95%); French Bank (5.55%); Galicia Financial Group (5.50%); and Banco Macro (4.76%).
For its part, the only fall of the wheel was registered by Ternium (-0.59%).
In the foreign exchange market, the most important repercussion was verified in the informal market, where the so-called “blue dollar” fell 10 pesos on Friday, remaining at $213 per unit.
The price of the official dollar, for its part, closed on Friday at $110.68 on average, with which it accumulated an increase of 90 cents throughout the week, equivalent to a rise of 0.82% compared to last Friday.
In the stock market, the dollar counted with liquidation (CCL) traded with an increase of 3.4%, to $2,240.00 and the MEP registered a fall of 3.2%, to $216.66.
In the wholesale segment, the price of the US currency marked a rise of seven cents compared to its last settlement, at $104.84, while during the week it increased 50 cents (0.48%).
Thus, the dollar with the 30% surcharge -considered in the Country tax-, marked an average of $143.88 per unit; and with the advance payment on account of the Income Tax of 35% on the purchase of foreign currency, the average value was $182.62.
Asked about the rise in bonds and the papers of Argentine firms on Wall Street, Diego Martínez Burzaco, head of Research at Inviu, told Télam that the agreement serves to “avoid a situation of greater financial stress” and that the understanding generated a rebound in Argentine ADRs and public securities.
“This trend may continue for a few more days, but my impression is that for the next few weeks, the market is going to want to evaluate concrete measures. The agreement avoids default, but requires Argentina to make more fiscal adjustments, no matter how much the policy says so.” On the contrary, if the measures arrive, I believe that the market will react positively,” the analyst concluded.
Along the same lines, Santiago López Alfaro, president of the consulting firm Patente de Valores, told Télam that the news had a positive impact on the price of Argentine bonds and paper on Wall Street.
“Surely this is part of a rebound because assets are very oversold. For it to become a trend, the market will wait to see if the macro starts to improve in terms of inflation and reserve accumulation,” the specialist said.
In his turn, Christian Buteler, a financial analyst, told Télam that “the market was gambling that it was not paid and that it was going to default, that’s why the news hit hard for the other side, especially in bonds where they were seen strong raises”.
Buteler explained that the increase in the variable income and fixed income segment “is, for now, a reaction to good news, because there is still no concrete measure”, so it is not yet possible to speak of a change in trend.
“The market is going to measure how the reserves are, the level of expenses, the collection. The news is positive, but it is a reaction of the moment. Once the goals are established, then they have to be met. That is the most difficult” , he concluded.
Finally, Gabriel Torres, analyst and vice president of Moody’s Investors Service, explained that if the agreement leads to policies that lead to a sustained reduction in macroeconomic imbalances, “this would be positive from the credit point of view.”
“The fulfillment of the goals established in the program, in particular the reduction of the fiscal deficit and the monetary financing of the Central Bank, will represent a major test of Argentina’s will and capacity to make important adjustments to the current policy framework. economy,” Torres said in a statement.
