Friday, February 3

Bonds in dollars rose for the first time in the year and Country Risk registers the greatest fall in 6 weeks

The rates of return of the bonds in dollars (IRR) exceed 25% per year, while the five-year default insurance coverage (CDS) remains high, reflecting the doubts of the market.

In this framework, Country Risk fell 1.6% to finally lose 1.3% to 1,869 basis points.

“The weighted average price returned to the minimum levels after the restructuring. The indicator stood (on Tuesday) at US$30.73. The curve deepened its negative slope and the average rate exceeded 21% for the first time since the debut of the new Titles”, they assured on Tuesday from Portfolio Personal Inversiones.

“The cautious external climate continues to act as a serious condition for risk appetite, hence household assets are negatively influenced beyond the fact that the attention of the operators continues to be mainly concentrated on the IMF”, said Gustavo Ber, an economist at Estudio Ber.

“Some more constructive signs and expectations allow a respite after the heavy punishment that bonds and ADRs have been accumulating, given that forecasts grow that a ‘light’ agreement could finally be reached”, estimated.

The Argentine Foreign Minister Santiago Cafiero, met on Tuesday with the US Secretary of State, Antony Blinken. After the meeting, the official said that he hoped to receive support from the United States in the negotiations with the IMF.

As for foreign markets, Investors are paying attention to the Fed’s decision that could raise US rates four or five times during 2022, and sooner than expected. US Treasury bond yields fell after hitting new two-year highs on Wednesday.

S&P Merval y ADRs argentinos

The leading S&P Merval index of Argentine Stock Exchanges and Markets (BYMA) gained 0.3%, to 83,615.75 units, after losing 1.98% in the previous session. On Tuesday, nine ETFs (Exchange Traded Funds) began to operate in the local market through Cedears that will give greater agility to the operation, operators said.

The ADRs that lead the rises are Pampa Energía (+1.8%), Ternium (+0.8%), and Grupo Galicia (+0.7%). While the papers that fell the most were Mercado Libre (-2.8%), Telecom (-2.4%), and Loma Negra (-1.1%).

In the local market, the largest increases in the leading panel were Transportadora de Gas del Norte (+2.6%), Cresud (+2.2%), and Pampa Energía (+2.1%). As for the biggest declines, Centra Puerto fell 1.9%, Banco Superville and YPF both lost 1.6%.