Effect of restrictions on the dollar: ADRs and bonds fell up to 9%; country risk rebounded 5.5%

In the Buenos Aires stock market, for its part, The S&P Merval index of Argentine Stock Exchanges and Markets (BYMA) lost 5.5%, to 42,167.86 units, the lowest in two and a half months. The leading panel went on to accumulate so far this month a drop close to 10%.

The most pronounced setbacks of the day were recorded by the papers the bank BBVA (-8.5%); from Grupo Financiero Galicia (-8.4%); Banco Macro (-8.4%); of Transportadora de Gas del Sur (7.9%); and Central Puerto (-7.6%).

The new regulations, which establish more restrictions on the use of dollars for consumption abroad, purchases of foreign exchange for savings, exchange operations with bonds, and which also oblige companies to refinance debt capital maturities (operating between 15 October and March 31, 2021) accelerated the pessimism about Argentine assets, which were punished by widespread sales throughout the round.

“Nothing seems good for the prices of financial assets in the short term, which although they have incorporated many of the existing bad news, they lose their exit force in a negative short-term dynamic”, stated from Delphos Investment.

Operators and analysts estimate that the new exchange scheme imposed by the monetary authority discourages operations and investment in the local market.

“The measures that are aimed at restricting the drain on dollars more are real than expected, but perhaps under other actions. For its part, the decision in particular to ‘push’ to refinance maturities in dollars to companies will add more ‘noise’ beyond the market measure “, they warned from Portfolio Personal Inversiones (PPI).

“The market was already anticipating measures from the Central Bank and the Ministry of the Economy due to low reserves. Although we believe that what was announced yesterday (Tuesday) was worse than expectations”they added.

For his part, Fernando Camusso, director of Rafaela Capital, told Ambit than “Forcing companies to get financial dollars or to restructure obligations is the same as making a foreign exchange split official and making them go out via a higher dollar.”

At the same time, “Charging an additional 35%, even if it is on account of profits, is to impose a higher financial dollar, to prevent savings in dollars. This is equivalent to an officialization of an exchange split. That is, a whole series of batteries that they will tend not to show what really happens “, evaluated.

Bonds and risk country

In the fixed income segment, the new Argentine bonds fell sharply due to a marked aversion to risk after the exchange measures announced.

For example, the Bonar 2030 “D” subtracted 6.2% and the Bonar 2020 “D” fell 5.2%, in a reduced place and offering business.

Faced with it, Argentina’s country risk, measured by JP.Morgan bank, rose 5.4% to 1,179 basis points.

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