The Port bag started lower on Wednesday, before foreseeable profit-taking after accumulating a string of eight consecutive sessions on the rise and in the midst of a financial market convulsed by political noise and the rise of parallel dollars. On Wall Street, all the papers of Argentine companies started with red numbers and the Sovereign bonds in dollars show falls of the order of 3% at 15 in Argentina, which push the risk country to a jump of 75 points.
The leading index S&P Merval it lost 2.7%, to 276,621.31 points, at 2:30 p.m. after improving about 15% in the previous rounds and scoring a record high of 288,818.20 points the day before.
“The local stock market index broke resistance at the 260,000 point level, which had been an obstacle on more than three occasions at the beginning of the year, and accumulates a 30% rise in the last month, reaching 285,000 points” , said Mauro Natalucci de Rava Bursátil in statements reported by Reuters.
In the global context, investors’ attention was focused on what the Federal Reserve might have to do to control inflation, with slight falls in the main indicators of the New York Stock Exchange.
precisely in Wall Street, in which about twenty shares of Argentine companies are listed, all the numbers are red this morning. The american depository receipts (ADR) of Argentine firms listed in New York fell between 0.09% and 4.10 percent. The worst performance is that of Transportadora de Gas del Norte, although it is closely followed by the ADRs of Telecom, YPF and Loma Negra.
An exchange market complicated by new records of the free dollar, the cash with liquidation and the MEP dollar infects the Stock Market with its doubts.
“Uncertainty about the electoral scenario, in the midst of tugs in the coalitions for the candidacies, continues to rise and this further complicates the ability to manage fiscal, monetary and exchange imbalances in this delicate transition stage, which leads to a context of a dangerous acceleration of inflation”, said Gustavo Berfinancial analyst.
“Operators continue to pay attention to the progress of the agricultural dollar, both in terms of liquidations and reserve accumulation, since it is recognized that after this window of advancement, they would once again face a drain on foreign currency. Faced with the coverage that electoral processes usually activate and the monetary issue associated with the soybean dollar, the free dollar – and to a lesser extent for now the financial ones due to interventions – are rearranging since they would also have no space to accumulate a greater low arrears a scenario of acceleration of the nominality of the economy”, he added.
In this context, the country risk climbed 75 points in a single day as a result of a new bearish round for Argentina’s sovereign debt in dollars. The Global bonds governed by the New York Law lost this morning between 1.73% and 2.45%, while the bonds governed by the Argentine Law fell back to 1.47 percent.
The Embi+ Argentina index prepared by JPMorgan, the “country risk”, exceeded 2,500 points this morning, reaching 2,593 units.
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