Markets: the stock market climbs 3% and the Argentinian share gains up to 9% on Wall Street

As Wall Street indicators point to gains in the range of 1% to 1.6%, the index S&P Merval of the Buenos Aires Stock Exchange operates with a up 3.2% to 258,000 points Thus, the panel of flagship stocks maintains a rise in the peso of 27% in 2023 and remains above the psychological barrier of 250,000 points, considered as short-term resistance for the indicator of the Buenos Aires Stock Exchange .

“The 250,000 point area has been acting as a good resistance for the index lately,” he said. Alexander LondonoActivTrades Analyst.

On Wall Street, ADRs and shares of Argentine companies that trade in dollars advance up to 9%, with Cresud in charge. It also highlights improvements in YPF (+6.1%, to $12.28)Banco Supervielle (+5.4%) and Grupo Financiero Galicia (+5%).

The bone dollar bonds are trading with an average decline of 0.4%, according to the Wall Street-traded Globals benchmark. He countries at risk of JP Morgan advanced three units for Argentina, in the 1,964 stitches basic.

“Sovereign bonds continued to fall and country risk once again exceeded 1,900 basis points. The good news is that the Merval resumed its bullish trajectory while local currency bonds, despite being at the center of the debate between the two main political forces, managed to overcome the uncertainty and closed the week with highs. widespread increases. Among these increases, inflation-linked bonds stood out,” he said. Martin PoloCohen’s chief strategist.

“For the moment, the discussions between the government and the opposition on the debt in pesos have not had a major impact on the market. However, regardless of the sustainability of the size of the debt in pesos, the truth is that you have to survive in 2023, where over $7 trillion comes due in private debt. If a small part decides to dollarize, the gap would go up another notch very quickly,” said the economist. Roberto Gerettoanalyst at Fundcorp.

“In the rest of the year, the Treasury will face maturities of 13.4 trillion pesos, an average of 1.2 trillion per month”, indicates a report by the Romano group and estimates that “the market does not does not want to lend well beyond September 2023, avoiding the electoral risk”.

Economist and Business Advisor Salvador DiStefano He pointed out that “the real problem is in the Treasury debt. During Alberto Fernandez’s tenure, the Treasury’s debt in pesos increased by $18,948,085 million, more than double the budget deficit the government had during the period analyzed.

“If we take the total figures, the accumulated deficit under the current government was $7,537,470, the increase in the Treasury debt in pesos and the remunerated monetary liabilities of the Central Bank amounted to $27,559,640. This implies that the debt in pesos has increased by 3.66 times the deficit it tried to finance,” Di Stefano said.

“Unfortunately, the Argentine government continues to finance itself through the inflation tax. By not generating wealth, inflation serves to transfer resources from the private sector to the public sector, impoverishing citizens and reducing their purchasing power,” he said. Lautaro Muschetanalyst at the Libertad y Progreso Foundation.

“This is where the contradictory argument appears, since the huge social expenditures are used in theory to help the poorest. But in truth, this exacerbates the budget deficit, which in turn is covered in the monetary issue. Consequently, inflation increases and liquefies purchasing power, generating an increase in poverty,” Moschet explained.

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