The ADRs of Argentine firms on Wall Street and the bonds in dollars operate with profits

Argentine assets abroad report widespread increases, on a day in which the reference markets operate positive

By mark phillip

11/22/2022 – 2:53 p.m.

The ADRs of Argentine firms on Wall Street and the bonds in dollars operate with profits

The shares of Argentine companies on the New York Stock Exchange they register increases of up to 4.9%, led by Cresud, in a session in which the main US shares also operate with profits. At the local level, the porter bag It trades with losses of 0.30%, while measured against the dollar with liquidation it stands at US$473.

In the fixed income segment, despite starting heavy, sovereign bonds in dollars in hard currency show increases of up to 1.4%, led by Global 41, while titles in pesos register mixed results.

The market looks with concern at the tenders promoted by the Government to finance itself. In this sense, Treasury obtained $165,866 million in the last tender, barely exceeding the payments of $164,233 million. Thus, the Finance team obtained additional funds for only $1,633 million, which represents the worst result in a primary tender since May 27.

Since Personal Portfolio Investments They explained that the health of the domestic market impacts the health of the Argentine economy. Beyond the instruments themselves, the peso market is of vital importance for financing the Treasury deficit, in other words, “if financing is not obtained through this route, it is likely that another worse alternative will be sought, such as the monetary assistance from the BCRA. In short, it is another sign of weakness from the primary market.”

What happens in the markets of the world

Wall Street posts positive results on its main indices, awaiting comments from Federal Reserve Chairs Loretta Mester and James Bullard for more clues on the US Central Bank’s next policy moves.

In this context, yesterday the president of the Federal Reserve Bank of San Francisco, Mary Daly said officials could raise the Fed’s key policy rate above 5% if inflation doesn’t abate. Daly also noted that canceling a 75 basis point increase in December is “premature” and that “nothing is out of the question.”

Argentine ADRs on Wall Street mark ups and downs and sovereign bonds in dollars operate at a loss

Argentine ADRs on Wall Street mark ups and downs and sovereign bonds in dollars operate at a loss

On the corporate front, the shares of Zoom Video Communications (ZM) are falling sharply after the video conferencing platform cut its annual revenue outlook and projected new challenges posed by declining demand for online meetings.

At the geopolitical level, investors are also looking closely at the sharp increase in Covid cases in China that has unleashed a wave of new restrictions for the world’s largest economy, just weeks after investors celebrated the end of aggressive lockdowns in the country.

Wall Street

The main Wall Street indices are trading higher. Thus, the S&P 500 adds 0.79%; the industrial Dow Jones gains 0.81%; and the technological Nasdaq advances 0.57%.

Merval

The Merval registers a drop of 0.3%. Thus, the falls of the leading actions are registered by Central Puerto (-2.37%); Ternium (-2.23%); and Aluar (-1.92%).

ADRs

The ADRs of Argentine companies on the New York Stock Exchange operate with the majority of gains led by Cresud (4.9%); Edenor (4.5%); and Tenaris (3.8%).

bonds

The most reference hard currency dollar bonds show increases of up to 1.4%, led by the GD41D, while the titles in pesos register ups and downs.

The Merval registers a drop of 0.3%

The Merval registers a drop of 0.3%

Risk country

The country risk is located at 2,417 basis points.

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