Argentine over-the-counter debt changes upward trend despite risk aversion



Screens show data of the stock market at the Buenos Aires Stock Exchange


© Reuters / MARCOS BRINDICCI
Screens show data of the stock market at the Buenos Aires Stock Exchange

BUENOS AIRES, Jan 22 (Reuters) – Argentina’s bonds were on a positive path on Friday due to opportunity purchases, after showing losses in much of the wheel, in the face of investor prudence that could clarify the future of the economy, in moments in which an agreement of extended facilities is negotiated with the IMF.

Argentine President Alberto Fernández spoke yesterday with the managing director of the IMF, Kristalina Georgieva, within the framework of the design of an economic program supported by the multilateral organization but led by Argentina, the government said.

“Opportunity purchases appeared and everything changed at the close with the bonds, but it is normal that they fell during the day because sales had skyrocketed due to the fears that the economy generates, despite the tempting returns. It will be vital to see how the Government manages to reduce its fiscal deficit, “commented a private sector banking operator.

In this regard, the Minister of Economy Martín Guzmán said at a press conference that “we have to put the fiscal accounts in order (…) The reduction of the deficit is important because we know well that the deficits are financed with debt or with monetary issuance , and for different reasons that ends up generating problems, which we do not want to happen again in Argentina. “

“It is also important to gradually reduce, in a consistent way, the financing needs from the central bank to the Treasury. The entire multi-year macroeconomic stabilization program will take these principles into account,” he said.

The financial market highlighted a strong improvement in the shares of the state oil company YPF, after a notorious “beating” in previous rounds due to current fears about a debt swap in progress and changes in the company’s presidency .

* OTC bonds reversed course towards the end of business and averaged a 0.5% improvement, in an unstable and speculative market. Bank JP.Morgan’s country risk fell 16 basis points to 1,424 at around 5:00 p.m. local time (2000 GMT).

* The S&P Merval index of Buenos Aires also had ups and downs, although it remained stable at 48,470.91 units as a provisional closure, where YPF shares rose 7.87% on speculative purchases of short positions after a recent collapse of almost 15% weekly.

* The Buenos Aires stock market has moved at its lowest since the beginning of November, despite the general improvement of the ‘ADRs’ of Argentine firms on Wall Street.

* Minister Guzmán denied the official news agency Télam about recent rumors of an alleged plan for the total nationalization of YPF. “YPF is a private company with 51% state participation that has a strategic role in Argentina’s energy development, and it will continue to do so,” he said in statements to the press.

* The peso lost 0.16%, to a record low of 86.56 / 86.57 per dollar, with the regulation imposed by the central bank (BCRA), which closed the wheel with a balance of about 50 million dollars sold of its reserves, to lose about 130 million in the week, said operators.

* One of them said that “authorized purchase orders dominated much of the development of the wheel (on Friday), demanding sales (of dollars) from the central bank to compensate for the lack of genuine supply.”

* In the alternative segments, the peso remained stable for its different branches: at 148.8 per dollar in the ‘Cash with Settlement’ stock market (CCL), at 145.9 units in the ‘MEP dollar’ of the Electronic Open Market (MAE ) and 156 per dollar in the small informal market.

(Reporting by Jorge Otaola; Additional reporting by Hernán Nessi; Edited by Walter Bianchi)

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