Friday, November 26

S&P Merval rallied, but bonds fell back on track with low volume

The increases in Auar (+ 5.4%) and Loma Negra (+ 4%) stood out.

The volume traded in stocks fell almost 60% to $ 603.8 million due to the holiday of Thanksgiving in the US.

“The Merval (…) remains within the consolidation of Wednesday, amid 82,500 points as support and 85,000 points as resistance,” commented Alexander Londoño, analyst at ActivTrades.

After an adverse result in the legislative elections, the Government lost control of Congress and promised to present in the first week of December the economic plan to advance negotiations with the International Monetary Fund (IMF) for a millionaire debt.

“It is convenient to clarify that none of the structural reforms that the country requires to move forward will have to be put in place based on the extended facilities program that we sign with the Fund (IMF), assuming there is an agreement”, estimated a report from Massot / Monteverde y Asociados.

Bonds and Country Risk

In the fixed income segment, the bonds denominated in dollars closed again with drops that, in some cases, reached 3.8%, such as the Global 2029.

In this framework, the Country Risk -prepared by the JP Morgan bank-, maintained stability due to the inactivity with the assets in the US, so it ended at 1,821 basis points compared to a minimum of 1,083 points in September 2020 after the closing of the foreign debt swap.

The local financial market is also affected by the concern produced by the outbreaks of Covid-19 in Europe, a potential rise in rates by the Federal Reserve and the notorious strength of the dollar that weakens emerging currencies.

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