Markets: Argentinian stocks and bonds closed with solid gains after the debt swap agreement with banks

The Argentinian stock market closed with significant gains on Monday, with the positive impact of the agreement reached by the Minister of Economy, Sergio Massawith bank managers for exchange treasury bills for pesos in the hands of entities for securities maturing in 2024 and 2025, which dissipates the panorama of maturities this year.

The government and the International Monetary Fund (IMF) continue to negotiate central bank reserve targets for 2023, amid speculation over a bond swap to reschedule maturities and dispel default doubts in an election year.

The leading index S&P Merval of Buenos Aires appeared at the closing with up 2.9% to 253,018 unitsafter falling 1.1% in pesos last week.

“The market awaits (on Friday 10) the presentation of the results of YPFwhose forecasts are significantly better year over year, an issue no less important given the definition that keeps investors on the sidelines,” said Mauro Natalucciaccount manager at Rava Bursátil.

Dollar bonds rose 1.8% on average, as evidenced by the improvement in Global bonds -foreign law- on Wall Street. He countries at risk JP Morgan, which measures the spread of US Treasuries with its emerging peers, lost 44 basis points for Argentina, to 2,047 stitches Base at 6:10 p.m.

“It should be remembered that currently the context of emerging credit is far from improving. The monthly indicator of American economic activity (ISM) for February revealed discouraging figures for the market, in contraction for the fourth consecutive month. ” This had an impact on US Treasury yields, which hit a 16-year high (4.9%),” Portfolio Personal Inversiones said.

On Thursday, information about the program was revealed. buyback of public securities Promoted by the Ministry of Economy. “The Treasury had $1,617 million in nominal terms as of February 28, increasing its position by $1,008 million as of January 31. In this way, it is confirmed that the rate of redemption of public securities has slowed down from 1,008 million nominal in the first 18 rounds of the program to a total of 609 million in the 18 working days of February. As (Minister Sergio) Massa had anticipated at the time, the intervention focused on the short end of the curve with the GD30 in the lead, accounting for over 94% of the portfolio,” they added. Personal Portfolio.

Javier Timermanpartner of Adcap Grupo Financiero, estimated that “we have fluctuations in the markets, because we do not know if rates at 5% are enough to bring down inflation and if they are enough to slow down the economy. It seems not”.

“I think now you will see a period of high rates coming where companies will start to live with this situation. A new financial dynamic is opening up where it will not be so easy for our markets to attract money flows We need to be careful and respectful of high risk stocks Personally today I look at high return companies that have well known products like one of blue boatsaid Timeman.

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