Traders moved cautiously on Monday after the announcements made by the new Minister of Economy, Silvina Batakisin which he ratified the decision to put the axis in the search for fiscal balancewaiting for more indications about the position of the other actors that make up the government coalition.
In this context, stock dollars fell by 1.1%, while bonds in dollars and the shares of Argentine companies in New York also fell, in a day with a bad business climate at the global level.
In the city of Buenos Aires, the S&P Merval fell 1.33%, as a result of the fall in the price of the implicit exchange rate (CCL), which was the engine that explained the increases in the leading Buenos Aires index last week.
The casualties were led by Cresud (-3.91%); Macro Bank (-3.41%); BYMA (-2.83%); Pampa Energia (-2.79%); and Supervielle Group (-2.71%).
Meanwhile, the main rises were made by Sociedad Comercial del Plata (2.56%); Edenor (1.41%); Cablevision (1.08%); Alua (0.95%); and Holcim (0.88%).
In New York, the papers of Argentine companies ended the session with most results in the red, among which Mercadolibre (-6.9%) stood out; Cresud (-4.9%); take off (-4.3%); Globant (-4.3%); and YPF (-4.1%).
In the opposite direction, the three stocks that closed higher were Tenaris (2.7%); Central Port (1.9%); and Loma Negra (0.9%).
In the debt market, dollar bonds ended with losses of 30 cents on average throughout the curve.
On the other hand, CER-adjusted securities in pesos closed with increases of 2% on average in the short tranche and 5.5% in the medium and long tranches.
In this way, the country risk recorded an increase of 0.7%, to stand at 2,667 basic points.
Regarding the foreign exchange market, The official dollar price closed this Monday at $134.66up 77 cents from Friday.
In the informal segment, the so-called “blue” dollar marked a drop of five pesos, to an average of $268 per unit.
In the stock market, the dollar counted with liquidation (CCL) fell 1.1% to $297.49 and the MEP dollar fell 0.8% to $283.91.
In the wholesale segment, the price of the US currency registered an increase of 55 cents compared to the previous closing, at an average of $127.35.
Thus, the dollar with the 30% surcharge -contemplated in the PAÍS tax-, marked an average of $175.06 per unit, and with the advance payment on account of the Income Tax of 35% on the purchase of foreign currency, $222, 19.
Consulted by Télam about the reception that Minister Batakis’s announcements had in the city of Buenos Aires, the analyst Santiago Lopez Alfaroholder of Securities Patent, said it was a speech “with good intentions in line with what is expected by the market”.
However, he pointed out that it remains to be seen how much the BCRA will raise interest rates and the rate that the Treasury will validate in the next auction of titles in pesos, since “it is important to stabilize the debt market in the short term.”
Regarding the price of Argentine assets, the economist pointed out that despite the fact that “they are very cheap”, as the uncertainty is going to continue for the time being, the big investors “do not plan to buy”.
“This package of measures does not modify the macro imbalances that large investors are looking atyes Especially the exchange rate gap, which threatens the accumulation of reserves,” added López Alfaro.
For analysts, the position that the different legs that make up the government coalition have on the announcements made by the minister will be fundamental.
From the consulting firm Epyca they said that Batakis’s speech “added many promises and few immediate application measures” and that the issue involves the exchange rate gap, among other issues.
The positive data highlighted in Epyca was that “the minister reaffirmed her commitment to maintaining a fiscal path and that should be interpreted in the medium term as a favorable aspect.”
“Greater discipline, accompanied by rational spending and an agreement with the Fund, could encourage the recovery of local assets,” they added.
From Adcap Grupo Financiero -the firm led by Javier Timerman- they affirmed that Minister Batakis’s statements were in line with what was expected by the market, since it confirmed the continuity of the economic program and ratified the search for fiscal solvency.
“The market begins to digest the economic measures announced this Monday morning by the Minister of Economy, Silvina Batakis. Among other things, the official said that the State is not going to spend more than it has, ruled out a debt default in pesos, stated that the multilateral exchange rate is in balance and that the country has to travel a path of positive real interest rates,” Adcap pointed out.
