Argentine stocks posted significant profit-taking on Monday, dragging down the negative trend on Wall Street, while sovereign bonds traded flat and alternative dollars deepened their decline.
The Free dollar started the week with a drop of two pesos, to $202 for sale, a minimum since December 21. Over the course of 2022, the free dollar falls eight pesos or 3.8 percent.
They also probed minimum prices since mid-November other alternative prices to the exchange “stocks”, such as the “cash with liquidation” and the MEP dollar, at $188.38 and $186.83, respectively. The financial dollars come from registering their biggest weekly decline of the year, after the average sanction in the Chamber of Deputies of the agreement with the International Monetary Fund (IMF).
Meanwhile, the wholesale dollar ended up being offered at $109.20, with an increase of 32 cents (+0.3%) to reduce the exchange gap to 83.2% with respect to the “blue” dollar, and 74% compared to “counted with liqui”.
The collapse of the stock market dollars was so marked that now the dollar to the public in banks, which averages $189.17 for sale is more expensive than the MEP and the “liqui”which savers can access without a monthly quota of 200 dollars.
The Central Bank bought about USD 91 million in a cash wheel (spot) with operations for USD 306.9 million, to add a positive net balance of about USD 556 million so far in March, after four months with a negative balance due to his interventions.
starting this monday the agreement with the Fund was discussed in the Senatewith half sanction in Deputies, with the presentations of the chief of staff, John Manzurthe Minister of Economy, Martin Guzmanthe head of the BCRA, Miguel Pesceand other authorities, for the purpose of explaining in the upper house the agreement entered into with the IMF.
The new agreement with the IMF, which seeks to be approved before a Maturity of some USD 2,800 million on March 22establishes a grace period of four and a half years and extends disbursement payments to 10 years, so the Government will begin to pay off the debt in 2026 and end in 2034.
The leading stock index S&P Merval of the Buenos Aires Stock Exchange lost a resounding 4.5%at 84,955 points, after falling 1.4% on Friday. Stocks from the energy and financial segments, the most liquid in the market, set the trend in the market, led by Cresud (-9%)Pampa Energía (-7.4%), Transportadora Gas del Sur (-7%), Cablevisión (-6%) and YPF (-6%).
Abroad, the falls in dollars were led by Transportadora Gas del Sur (-6.9%), Cresud (-6.4%), Pampa Energy (-5.2%) and Telecom (-5,1%).
bonuses Global prices in dollars closed with an average drop of 0.6%Meanwhile he risk country JP Morgan had nine units left for Argentina, 1,807 points basics at 5:00 p.m., mainly because US Treasury bonds fell in price and their yields rose to 2.14% annually for the ten-year title, the highest rate since June 11, 2019.
Likewise, the agreement in dance must have the approval of the agency’s Board of Directorswhich is expected to occur immediately after the sanction as a law from the Argentine Congress.
“The political and economic limitations predict a continuous struggle in the mud of decadence if strategic changes are not faced,” he said. Robert Drimerowner of the consulting firm VatNet Research.
The Economist Miguel Broda argued that “the economy will enter a path of extreme financial fragility” in the current situation.
To make matters worse, the market added another stumbling block since The Government closed on Sunday the record of exports of soybean meal and oilwith what is speculated to be the initial step to raise tariffs on exports of these products, a measure widely rejected by agricultural entities.
In the external context, the markets went from high to low, after signs of progress in the peace talks between Russia and Ukraine. European indices finished with gains, but Wall Street closed in the red. The Nasdaq technology index resigned 2%; the S&P 50, 0.7%, while the Dow Jones Industrials ended neutral.
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