Wednesday, December 8

S&P Merval ended negative streak and bounced 2.3%; Country risk rose again

After starting the day in low, the index S&P Merval by BYMA bounced 2.3%, to 89,512.44 units, against the 8.8% drop in the previous four sessions and its intraday record of 97,024.42 points recorded last week.

The most important rises of the day were carried out by the shares of Telecom (+ 5.8%); BYMA (+ 5.2%); Pampa Energy (+ 5%); and YPF (+ 4.5%).

The volume traded in shares fell for the sixth consecutive day, registering a decrease of 11% to $ 1,649 million, representing 32% of the total traded in equities (the amount traded by the Cedears rose 7.8% to $ 3,042.7 million).

The rebound of the leading panel occurred at a time when the financial market seeks hedging in foreign currency after the adverse result for the Government in the legislative elections. Thus, from now on he will have to negotiate with the opposition relevant issues in Congress, including a crucial agreement with the International Monetary Fund (IMF).

“The stock market expects positive news to continue with the trend for part of October and November,” commented a trader. Investors are waiting with expectation for signals from the Multi-Year Program for Sustainable Development. “The basis of the plan is to know what growth strategy can be sustained in a context of an unpayable debt with the International Monetary Fund, and in an inflationary scenario,” added market sources.

On Wall Street, meanwhile, Argentine stocks closed mixed, with increases led by Take off, which jumped 9.3%. Then the papers of Telecom Argentina (+ 4.3%); from Pampa Energia (+ 3.3%); and YPF (+ 3.3%).

Both the S&P 500 and the Nasdaq hit all-time closing highs (up 0.5%) after a rough Thursday, as investors focused on positive results from retailers and tech companies, overshadowing comments from an official from the Federal Reserve on inflation. The Dow Jones continued to lag (down 0.2%), posting its third decline this week as a decline from Cisco Systems Inc weighed on the benchmark.

Inflation remains in the focus of investors’ attention. Stock markets initially fell after Federal Reserve Bank of New York chairman John Williams said inflation is spreading and expectations of future price increases are growing.

However, both the S&P and Nasdaq had later rebounded, with the latter being supported by Nvidia. The chipmaker soared 8% after beating quarterly estimates and forecasting strong revenue in the fourth quarter.

In the fixed income segment, dollar bonds lost up to 2.2%, as happened with the Global 2030 (GD30D). The weighted average price dropped to $ 33.28 and, with the correction of this Thursday, the monthly balance of the Globales now shows decreases of between -0.9% / 1.8%.

In this framework, the Argentine Country Risk rose 1% to 1,741 basis points.

On the other hand, dollar linked bonds in pesos operated on offer and fell 0.5% on average along the curve, despite showing a better start in the first operations.

Among the titles with CER adjustment, demand remained in the medium and long tranches, particularly in TX26 and Discount, which rose 2% on average.

After the market closed, the Ministry of Economy reported that it placed five Treasury securities in pesos for a total of 119,025 million pesos. The tender received 527 offers, which involved Treasury bills: ‘Ledes’, ‘Lecer’, ‘Boncer’, ‘Bote’, ‘Lelite’ and a ‘Badlar Bond’, for an effective total of 126,063 million pesos.

“In the second tender in November, the Treasury captured 126,063 million pesos, 180% more than what is due this week”, reported the Ministry of Economy, adding that “At the end of the second of the three bids scheduled for the month, the National Treasury accumulates a positive net financing of 149,388 million pesos.”

In the tender, 13,027 million pesos corresponded to the discount liquidity letter maturing on December 15, 2021, another 22,036 million pesos were awarded in Treasury bills at a discount maturing on January 31, 2022 and 27,150 million adjusted pesos inflation rate (CER) as of June 30, 2022.

For its part, for the Treasury bond in pesos at a fixed rate of 22%, maturing on May 21, 2022, 48,394 million pesos were awarded and for the bond adjusted by CER 1.4%, maturing on March 25 In 2023, 8,418 million pesos were raised.

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