ADRs start the week with a majority of increases and country risk falls for the third consecutive day

Parallel, the S&P Merval stock market index of Bolsas y Mercados Argentinos (BYMA) remains practically stable at around 42,029 units, after accumulating an improvement of 1.3% during the past week.

Although local stocks are not going through a good day, they are resisting the onslaught from Brazil, where the EWZ investment fund exhibited an intraday contraction of 4.6%.

It should be remembered that two weeks ago, between the Central Bank (BCRA), the AFIP and the National Securities Commission (CNV), they imposed new restrictions on access to the exchange market that increased the doubts of investors despite a recent successful swap of sovereign debt for about $ 100 billion.

The current economic situation shows “the need to propose a new economic and financial strategy that coherently recognizes the limitations of the moment without dogmatism, accepting the least bad possible solutions,” said the consulting firm VatNet Research.

In the same vein, the Rava brokerage firm pointed out that “as long as the noise in the market persists, uncertainty will prevail, the environment and volatility will go hand in hand”.

“These conditions can benefit different strategies and begin to glimpse accumulation prices, but in a general context mistrust reduces the incentive for long-term investments “, added.

Attention these days is focused on the signals that the meetings between the government and the representatives of the mission that the IMF will send to the country in October can provide. Broadly speaking, the options that are being considered to reach a new agreement are two: the signing of a new “stand-by” that would allow the country to start paying from 2024 in exchange for a commitment in fiscal matters or, instead , agree on an extended facility plan (“EFF”), which would be looser in terms of deadlines but more rigorous in terms of conditions towards the Government’s economic plan.

Bonds and country risk

Hand in hand with a new rise in stock exchange rates, the new bonds that are listed in pesos register increases while, on the contrary, those that are priced in dollars operate with a majority of setbacks. The main improvements are seen in the longer titles, such as the Global D 2035 and the Bonar 2041.

Meanwhile, the Argentine country risk fell for the third consecutive day, at yield 0.8% to 1,320 basis points.

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