Sunday, January 16

S&P Merval rises and cuts negative streak; Country Risk, at a minimum of two weeks


BYMA’s leading S&P Merval index was up 1.3% to 83,834 units, after falling 2.1% the previous session.

Investors, meanwhile, are closely following the slow negotiations with the IMF to reschedule a millionaire debt and the news surrounding the increases in Covid-19 cases both in Argentina and in the rest of the world.

“The Argentine Government has full interest in closing an agreement as quickly as possible based on an economic policy scheme that will allow the country to continue on the path of recovery and reduction of inflation”, Economy Minister Martín Guzmán said in an interview with the newspaper El País.

Sovereign bonds in dollars extended their gains from the previous day on Tuesday and showed the majority of bullish behavior. In this framework, Country Risk recorded its biggest decline in 15 wheels, falling 25 units (-1.4%), to 1,718 basis points, the lowest in almost two weeks.

Particularly The performances of the securities issued under local law stood out, whose prices rose up to 3.2% as in the case of the bonar AL29. For their part, assets operating under foreign law exhibited disparate closings.

At the same time, inflation-indexed bonds (CER) were coupled with optimism this Tuesday and also ended mostly with increases, with the exception of PR13. On Monday the Ministry of Economy called the last tender for debt in pesos in 2021. This time it will make eight titles available to investors; a very short-term letter destined exclusively to Common Investment Funds, three letters at a discount (fixed rate), a bond at Badlar Rate + 5.25%, and three instruments tied to inflation.

Through these assets, the portfolio led by Martín Guzmán will seek to cover the $ 280,000 million that expire on the last day of the year. It is worth remembering that in the previous tenders the Treasury accumulated a net financing of more than $ 100,000 million. In this way, it seeks to reduce dependence on monetary issuance to finance the fiscal deficit.

Weekly financial activity in Argentina will run until Thursday, due to the December 31 holiday, on New Year’s Eve.



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