Thursday, January 20

Argentine stocks jumped to 8.5% on Wall Street; Country Risk, firm above 1,750 points

The rises of the Argentine papers were led by Edenor (+ 8.5%); Bioceres (+ 5.9%); and Supervielle (+ 4.2%).

In the Buenos Aires Stock Exchange, meanwhile, S&P Merval’s leading Argentine Stock Market and Market Index (BYMA) gained 1.4% to 84,850.31 units, ending the week with an improvement of 1.9%.

The increases for the day were led by: Telecom (+ 3.4%); BYMA (+ 3.1%); and Ternium (+ 3%). Throughout the week, the performances of Cablevisión (+ 13.9%); Loma Negra (+ 5.2%); and Pampa Energía (+ 5.1%).

“Domestic assets are showing a recovery beyond the tone of caution and expectation that the negotiations with the IMF awaken, which will resume at the beginning of next year,” noted an analyst.

The international organization recognized on the eve that The conditions of the 2018 agreement were not “robust enough” to face the country’s structural problems and that it did not meet the objectives of restoring confidence in external fiscal viability.

Argentina paid the international credit organization almost US $ 1.9 billion, which hit the Central Bank’s reserves, which according to analysts it would have a net balance of only about $ 2.5 billion.

The monetary entity’s loss of currency accelerated in recent months, which triggered new doubts about the economy amid complex negotiations with the IMF to restructure a debt of about 45,000 million dollars that Argentina cannot face.

In the US, good activity data (durable goods orders), confidence indicators and less fear for the Omicron variant fueled a good day for Wall Street, and the S & P500 closed at its all-time high: it gained 0.6% and accumulated in the week a rise of 2.3%, while the 10-year bond rate rose 4 basis points to 1.49%.

In the fixed income segment, sovereign bonds in dollars closed unevenly, with increases led by Globals 2041 and 2046 (+ 0.7%). In New York, they operated on offer and with few businesses, falling about 10 cents on average along the curve, to accumulate an average drop of 85 cents for the week (or 2.5% in these parities).

In this context, Risk country measured by JP Morgan bank it grew 0.2% to 1,757 basis points.

For its part, the sovereign debt dollar linked maintained its upward bias in recent days and rose 0.7% on average, with good volume on TV23, which gained 1.5%. In the week, DL bonds accumulated a gain of 2% along the curve.

Finally, the span weights with CER adjustment finished the week taker, with you go up 0.5% on average, and accumulating in the week a gain of 2% on average in the short section and 4% average in the long section (TX28, DICP), reported SBS.

Argentine markets will remain closed this Friday, given a holiday for Christmas Eve.

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