Argentine assets at the local level and abroad registered falls, in line with the bad business climate that Wall Street showed
By Marcos Phillip
04/04/2023 – 18,18hs
The Buenos Aires stock market fell 1.25% and was located at 251,488.29 basis points, affected by the series of rumors that would mark new changes in exchange regulations. In the external market, the ADRs of Argentine companies that operate abroad registered the majority of decreases of up to 4.5%, led by Transportadora Gas del Sur, in a session where the main stock market indices of the United States ended negative.
In the fixed income segment, the sovereign dollar bonds under foreign legislation they registered majority of decreases along the curve of up to 4.24%, led by the Global 30while the titles in pesos with CER adjustment marked increases of up to 1.30%, led by the TX26.
In the local market, with the publication of the review for the fourth quarter of 2022 of the Extended Facilities Program with the IMF, the much-announced change in the goal of net reserves for 2023 became known. The BCRA must accumulate US$1.9 billion from the end of 2021 to the end of the first quarter of 2023, US$6.8 billion for the second, US$7.2 billion for the third and US$8.0 billion in the year.
From Grupo SBS they pointed out that, despite the downward recalibration, “they continue to imply a very important challenge for Argentina, given the prospects for dollar inflows severely affected by the drought. The IMF did not cut the estimate of the lower harvest too much, although All the estimates that we monitor continue to point to a drop in inflows of around US$20 billion,” they warned.
What happens in the markets of the world
Wall Street closed with negative resultsaffected by the latest comments from Fed members who anticipated that “there is still room for a more contractionary policy from the Central Bank.”
Thus, the president of the Federal Reserve Bank of St. Louis, James Bullard, said that the continued strength in the labor market gives the Fed room to fight inflation.
The Merval and sovereign bonds in dollars operate at a loss
Bullard also commented on OPEC’s decision to cut production, suggesting that it could potentially make the central bank’s job of reducing inflation more challenging as oil prices rise.
Along the same lines, the governor of the Federal Reserve, Lisa Cook, also highlighted that the labor market remains strong, so “we are still going to see inflation from there, but wage gains have moderated quite a bit.”
Even so, the Federal Reserve continues to view inflation as its main enemy, even amid recent banking turmoil that has shown signs of relief.
Wall Street
The main Wall Street indices traded with negative results. Thus, the S&P 500 fell 0.58%; the industrialist Dow Jones fell 0.59%; and the technological Nasdaq lost 0.52%.
Merval
The Merval recorded a drop of 1.25%. Thus, the losses of the leading shares were recorded by Transportadora Gas del Sur (-3.35%); Telecom Argentina (-3.34%); and Pampa Energía (-2.70%).
ADRs
On Wall Street, the papers of Argentine firms closed the day with a majority of reds. Thus, the losses were led by Transportadora Gas del Sur (-4.5%); Black Hill (-4.1%); and Take Off (-3.8%).
bonds
Sovereign bonds in dollars under foreign legislation registered decreases throughout the entire curve of up to 4.24%, led by the Global 30, while titles in pesos with CER adjustment marked increases of up to 1.30%, led by the TX26.
Risk country
The country risk is located around 2,352 basis points.
