Argentine stocks managed to weather another Wall Street crash

On the other hand, affected by a sharp drop in oil, Tenaris shares lost 5.2%; while Mercado Libre papers fell 5.6%, in line with the skidding suffered by the technology sector in the US.

“The Argentine ADRs had a day with a positive balance. This is very good, taking into account the days of declines in the North American markets”, an operator remarked.

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In the Buenos Aires stock market, for its part, S&P Merval index lost just 0.5% to 45,481.76 units, after falling at the beginning of the wheel to almost 3%.

Regarding the performance of the day, the increases of Cablevisión (+ 4.6%) and BYMA (+ 4.4%), while, on the contrary, the falls of Transportadora de Gas del Norte (-3.5%) and Edenor (-2.9%).

The volume of shares rose to only $ 783.5 million, and barely represented 27.5% of the total traded in equities, as the Cedears’ operations gained more and more space, which reached $ 2 billion (participation 72.5% ).

While investors focused on the operation of the new bonds, after Argentina managed to restructure foreign debt for some 66,000 million dollars and securities under local legislation for another 41,000 million dollars, in the world’s stock markets a greater aversion to risk in the face of renewed tensions between the United States and China and a new collapse in technology stocks.

In Wall Street, the Nasdaq slumped 4.1%, before the liquidation of Tesla papers (-21.1%), after news broke that it was not included in the S&P 500 index. But other technology giants also fell sharply.

In Brazil, meanwhile, the equity index Bovespa fell 1.2%, to 100,050 units.

For their art, oil prices closed sharply lower, in a session in which Brent plunged below $ 40 a barrel for the first time since June and WTI crude fell nearly 8%.

The drop came after Saudi Arabia cut its October sales prices and COVID-19 cases rebounded in several countries.

Coronavirus cases are on the rise in India, Britain, Spain and various parts of the United States, where the rate of infections has been uncontrolled for months. The rebound could weaken the global economic recovery and affect fuel demand.

Brent crude prices fell $ 2.23, or 5.3%, to $ 39.78 a barrel. Meanwhile, US WTI crude futures fell $ 3.01, or 7.6%, to $ 36.76 a barrel.

Bonds and risk country

In the fixed income segment, the new Argentine bonds closed with a slight upward trend, in a reduced business session, since the market is only expected to be operating under normal conditions next week.

Among new dollar securities, Bonar AL29 improved by 0.5%, Bonar AL30 by 0.8% and Bonar AL35 by 0.7%, while Bonar AE38 fell by 0.9%, and the Bonar AL41 was up 0.5%.

In the peso segment, the new Boncer TX26 fell 0.9%, while the Boncer TX28 fell 0.2%.

In New York, meanwhile, Argentine securities traded in the 12% “exit yield” zone, in the midst of a global sell off that has been going on for three days. “Argentina with very little can go to the 10% zone, and with a little more to the 8.5% zone, with capital gains above 20%,” projected Juan Paolicchi, an analyst at Eco Go.

It is worth noting that the new titles at the moment have a limited volume, since in the local market they operate only against pesos. “They will only be able to do it against dollars after completing the five days of ‘parking’ from their settlement date,” said Joaquín Candia, an analyst at Rava Bursátil.

“The caution of the operators should not surprise since not only the external climate intersperses greater prudence and volatility, but they must also withstand a scenario of greater political tensions and economic uncertainty”said Gustavo Ber, an economist at Estudio Ber.

He added that “the absence of ‘drivers’ only invites the development of ‘trading’ tactics, and while waiting for signals from the next budget presentation (2021) and negotiations with the International Monetary Fund (IMF)”.

Meanwhile, the Government is preparing to put out to tender on Wednesday a new treasury bill due in February 2021, while it will reopen two more bills and a CER bond. In this way They will seek to obtain $ 75,000 million in the local market with the aim of rolling over the debt that expires in the short term.

Finally, the Country risk prepared by the JP.Morgan bank remained practically stable since it barely rose three units to 2,120 basis points, pending a reconfiguration of the index with the new titles enabled to be listed. Traders estimate that with the new configuration it should fall about 1,000 basis points.


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