“The local environment began the day with a negative tint in the actions as in the reference market, however, they could not recover from the declines. After showing good results on Tuesday, today’s reality in the extension of the ADRs was completely different, with a list plagued by red figures, including Argentine assets listed in the New York market such as MercadoLibre, Globant or Vista Oil that yielded significantly in their prices”, explained Javier Rava.
He added: “However, the effects of the US Federal Reserve and a US market that rebounded strongly also had a full impact on local stocks, with most ADRs recovering part of their returns or directly changing their sign to positive variations“.
The Federal Reserve (Fed) raised its benchmark overnight yield by half a percentage point, the biggest increase in 22 years, and said it will start trimming bond positions next month in its battle to curb inflation.
In a unanimous decision, the US central bank has set the federal funds rate target at a range of 0.75% to 1%, and further increases in borrowing costs of a similar magnitude are likely.
“The rate hike by the Fed was taken for granted and is detrimental to the Argentine economy since international funds move to safer shelters, a complex scenario that overlaps with the political problem facing (President Alberto) Fernández “said a banking agent.
The internal discrepancies in the national government affect the investor appetite given that the hard sector that responds to Vice President Cristina Fernández opposes the latest measures of the Minister of Economy Martín Guzmán, with public criticism among leaders of the center-left Peronism.
Operators affirm that the stock market is at attractive levels given the delay in the face of the strong inflationary pressure that hits the national economy, which could exceed 60% this year.
bonuses and country risk
Regarding fixed income, bonds in dollars experienced positive quotes that appreciated at the same rate as stocks in the face of the Fed’s announcements. Among these, the foreign legislation curve performed better than the local one.
Particularly, the reference bonds AL30d and GD30d ended with 0.21% and 1.81% respectivelywhile the spread in pesos between them stood at 13% in favor of the foreign global bond which, although high, has come from several rounds of around 14%.
For its part, CER-adjusted bonds do not rest and continue to raise their prices in much of the curveespecially in the tranches corresponding to the current presidential mandate, since the difference in negative yields against the next security in 2024, which barely trades 1.1%+CER, is notorious.
The Argentine country risk prepared by the JP Morgan bank barely one unit, at 1,785 units, far from its record of 1,991 noted at the beginning of March.