Financial day: local stocks in the US fell sharply and the demand for dollars on the stock market increased

Financial day: local stocks in the US fell sharply and the demand for dollars on the stock market increased

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An operator works at the Buenos Aires Stock Exchange.

Wall Street ended with an uptrend and new all-time highs a erratic wheel. The Dow Jones ended marginally lower, but the Nasdaq advanced 0.6 percent. The volatility affected the rest of the markets, with falls of around 1% for the Bovespa de San Pablo and European markets, but the penalty for valuations was more significant for Argentine assets.

Bonds and domestic stocks ended broadly lower on Thursday against wallet disassembly by a context of distrust towards the future of the local economy, the delay in negotiations for an extended facilities agreement with the IMF and resurgence of Covid-19 cases.

Among the ADRs of Argentine companies that operate in dollars abroad, the 11.7% collapse in YPF shares, which closed at USD 3.25, its lowest price since last October 30. Analysts estimate that the oil company, which you are restructuring your debt and will make changes to its leadership, will make an improvement in the exchange offer in the coming days.

The most representative species of Argentina finished with a wide low: Free Market (-2.2%), Galicia Group (-3.4%), Tenaris (-3.4%) and Telecom (-2%). Only Corporación América finished higher (+ 1.3%).

The US dollar bonds with foreign law yielded 1.5% on average, while the risk country of JP Morgan increased by 17 hours some 22 units for Argentina, to 1,441 points basic.

The index S&P Merval of the Buenos Aires Stock Exchange fell 3.5% due to investor mistrust, at a close of 48,472 units. The drop of 8.7% in pesos noted by YPF stood out.

Bonds traded on the Electronic Open Market (MAE) averaged a 0.8% drop, after gaining 1.8% in the three previous sessions. The benchmark Bonar 30 (AL30D) fell 1.1 percent.

Measured in dollars, Argentine shares fall 10.9% in January and hit their minimum prices since the beginning of last November

“Operators continue without perceiving friendly political and economic signals that may lead to reactivate a greater appetite, even after the punished valuations exhibited by financial assets, and that is why only apathy still prevails, “he said. Gustavo Ber, an economist at Estudio Ber.

This Thursday, the president Alberto Fernández spoke with the managing director of the IMF, Kristalina Georgieva, within the framework of an economic program supported by the multilateral organization and designed and conducted by the Argentine authorities.

In Wall Street, stocks hit record highs and the dollar fell against a basket of currencies, as the Investors were betting that a major stimulus from the new president of the United States, Joe Biden, and the continued support of the world’s central banks would help offset the economic damage caused by the coronavirus.

The BCRA bought USD 10 million

The dollars that are traded through financial assets reinforced the upward trend, in the face of a greater demand for coverage. This Thursday, counted with settlement it was agreed above $ 149, to close at $ 148.88, while the MEP dollar traded at the close at 145.96, in the fifth consecutive session on the rise.

He Free dollar was traded without variations, at $ 156 in the reduced parallel market, still at its lowest value since last December 22. So far in January there has been a drop of 10 pesos or 6 percent.

In the market wholesaler the greenback advanced 10 cents, to $86,43, and the exchange gap with the currency in the parallel market shortened to 80.5%, the youngest since December 21.

In the average bank, the dollar to the public was offered at $ 151.59, with the 65% surcharge for the joint application of the Tax for an Inclusive and Solidarity Argentina (PAIS) and the receipt as advance payment of Profits.

The dollars that are traded in the Stock Market accumulate a rise of 6% so far in January

The analyst Christian Buteler He argued that “if the Government wants to continue on the path of lowering the gaps, that is achieved by lowering the free dollar, not raising the official one, it must remove those taxes that add nothing and complicate much.

Higher liquidations of exporters helped to increase the volume traded, by about USD 284.3 million in the spot segment, which allowed the Central Bank to end its intervention with a positive net balance of about USD 10 million, after sales totaling USD 90 million on the two previous wheels.

Ben Oakley
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