Private titles in Argentina rose again on Thursday due to persistent demand that brought the S&P Merval index to a record level, in a trend attributed by operators to the latest retraction of country risk and lagging values against the dollar.
The market in general has shown signs of turmoil this week after the victory of the local soccer team in the World Cup, with selective liquidity along with a profit taking in sovereign bonds and notorious weakness of the peso in the referential marginal round .
“We must be prepared for profit-taking in the offing. The red numbers on Wall Street indicate so,” a market trader said.
“In relative terms, the worst quality bonds became more expensive against other emerging markets, with Argentines standing out,” reported the consultancy Delphos Investment.
It is expected that the board of the International Monetary Fund (IMF) will soon approve the third revision of an agreement for 44,000 million dollars with the southern country, which will enable a new disbursement that will strengthen the battered reserves of the central bank (BCRA).
* The S&P Merval index of Buenos Aires grew 1.45%, to 182,459.79 points as a provisional closing, after noting its intraday historical maximum at 182,614.45 units, encouraged by bank papers such as those of BBVA, with a rise of 2.45%.
* “Vuela el Merval” said the settlement and compensation agency Cohen, with a country risk at the lowest level since the beginning of last June.
* Over-the-counter sovereign debt finally turned around and lost an average of 0.8%, after having accumulated a gain of up to 3.2% in the week, to leave behind nine consecutive rounds with better prices.
* This behavior was in line with the trend of Argentina’s country risk measured by the JP.Morgan bank, which went up 21 units, to the area of 2,103 basis points (2000 GMT), after recording its lowest level on Wednesday in a little over six months.
* The wholesale peso devalued 0.15%, to 174.53/174.54 units with the interaction of the BCRA, an entity that managed to add some 52 million dollars to its reserves thanks to the liquidation of benefited soybean exporters until the end of month for a special exchange rate of 230 per dollar delivered.
* Financial activity in Argentina will be normal this Friday the 23rd and the next 30, a BCRA spokesman confirmed to Reuters, which cleared up doubts in the market due to the administrative holiday ordered by the national government for the nearby festivities.
* The domestic currency in the alternative markets fell to 334 units in the “cash with settlement” (CCL), to 328 in the “MEP dollar” and up to 330 per dollar in the “blue”.
* The Argentine Secretary of Energy, Flavia Royón, said Thursday that the southern country will be able to reverse its deficit in the energy balance by 2024, which this year will reach 5.5 billion dollars.