BUENOS AIRES, Nov 26 (Reuters) – Argentina’s financial markets traded heavily on Friday, hit by growing global risk aversion on concerns that a new variant of COVID-19 could affect the global economic recovery, at a time when doubts about the future of the domestic economy are growing.
Slow negotiations between the country and the International Monetary Fund (IMF) to restructure a debt of about 45,000 million pesos, amid rising inflation, significant monetary issuance and exchange rate pressures, complicate the domestic outlook after the ruling party was defeated in elections mid-term.
“Argentine debt suffers not only from the lack of its own definitions, but also from a challenging climate at the international level. We are gradually entering a world of higher rates and the emerging debt universe is being harmed,” said Portfolio Personal Inversiones.
* Bonds in the local OTC market lost an average of 1.2%, where the benchmark ‘Bonar30’ fell 2.7%.
* “It seems demonstrated in the price that the bondholders need certain positive news that can generate enthusiasm again in these bonds and begin to increase their value,” said Ayelen Romero of Rava Bursátil.
* “The eye continues to be on the negotiation with the IMF and if it results in a successful negotiation (an agreement between both parties), this would be taken as something positive and could generate momentum in the bonds,” he estimated.
* The country risk prepared by the JP Morgan bank rose 39 units to 1,861 basis points after local noon (1550 GMT), after marking a historical maximum level of 1,866 in the first part of the session and its minimum level of 1,083 units noted after the external debt swap carried out in September 2020.
* The S&P Merval stock index fell 5.95% to 79,896.90 points, in line with the decline in local ADRs in New York. The ADRs of the state oil company YPF fell 9.21% in the local market and 6.71% in the US market.
* “The Merval maintains a downward trend since Friday of last week when it was at 90,000 points,” said Alexander Londoño of ActivTrades.
* In the exchange market, the interbank peso depreciated 0.1%, to 100.77 / 100.80 per dollar, with liquidity regulation from the central bank (BCRA), which seeks to preserve its scarce net reserves.
* The monetary entity ordered the prohibition of sales in installments of tickets and tourist services abroad at a time when the demand for dollars by Argentines persists as a hedge since they do not rule out a devaluation of the currency in the face of greater inflationary pressure .
* In the alternative segments of the peso, the stock market price called ‘counted with settlement’ (CCL) operated at 214.4 units, the so-called “MEP dollar” did so at 203.1 pesos and the referential informal dollar or ‘blue’ was it was stable at 201 per dollar.
(Reporting by Walter Bianchi; Edited by Jorge Otaola)