Markets: Argentine stocks extended gains and the Merval exceeded 150,000 points for the first time

Argentine stocks hold their highest prices of the year.

Argentine shares are traded with renewed gains this Monday, due to pending purchases among institutional investors, in a market conditioned by external weakness in the face of signs of a global recession.

The index S&P Merval of the Buenos Aires Stock Exchange advanced 3.1%, to 150,262 pointswith an intraday maximum of 150,971 integers, above its previous nominal record of 148,452 units, reached last Thursday morning.

Argentine stocks were thus coupled with a slightly positive behavior in the main indicators of the New York stock exchanges, which rose in a range of 0.6% to 0.8%, with technology as the protagonists. For this reason, operators do not rule out short-term profit-taking for Argentine assets.

As for Argentine ADRs and shares traded on Wall Street, the recent rises also extended, led by Cresud (+5.6%), Central Puerto (+5.5%) and Transportadora Gas del Sur (5%). YPF rose 3.6% to $7.22.

On the other hand, in the fixed income segment the dollar bonds reversed declines and closed with a marginal gain of 0.1% on average, according to the reference of the Globals of the exchange, with foreign law. The risk country of JP Morgan, which measures the rate gap of US Treasury bonds with their emerging peers, rose two integers for Argentina, to 2,384 points basics at 5:15 p.m.

The International Monetary Fund (IMF) reached an agreement at the level of officials in the second review under the extended program of funds with Argentina for 44,000 million dollars, the agency said in a statement on Monday.

The Government sent the draft Budget 2023 to Congress and thus seek parliamentary endorsement for its economic roadmap for next year. The same will have as pillars an inflation expectation of 60% by the end of that year, a fiscal deficit of 1.9% of GDP, maintaining the external trade surplus, and a growth in activity of 2 percent.

President Alberto Fernandez is in the US to participate in the annual UN summit. In his speech, the head of state would emphasize Argentina’s integration into supply value chains and the country’s potential in the energy sector and the Vaca Muerta oil field.

Fernández held a meeting in New York with the Managing Director of the Monetary Fund International (IMF), Kristalina Georgievafter having agreed last week on the second review of the program with Argentina, which received final approval on Monday from the board of the organism. This activates the disbursement of about USD 4,000 millionalthough a large part of such amount will return as repayment to the Fund.

After having focused on the technical review of the IMF, the Government will also move forward with the Paris Club for the debt of USD 2,400 million. Conversations with the group have already begun and the new goal is to have the agreement with the Paris Club closed before the IMF’s Annual Assembly, which will take place during the week of October 10 in Washington.

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