:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/TJCXWG7FKTDRWD2JMD7FB6A2YQ.jpg "Markets: the Argentine stock market falls and cuts a series of three consecutive increases 1")
The Argentine stock market fell selectively on Wednesday and interrupted a three-day bull run that it was supporting thanks to well-liquid stocks with external quotations as a hedge against the high inflation which is affecting the country’s finances.
Financial day: The free dollar fell to $379 and the BCRA extended the loss of reserves
The “blue” dollar lost two pesos and the exchange rate gap was 99%. The monetary entity sold 59 million USD to the MULC. S&P Merval loses 0.8% and ADRs on Wall Street up to 6%
The leading index S&P Merval of the Buenos Aires Stock Exchange was listed with a loss of 1.8%, to 254,000 units at 12:30 p.m., after rising 0.3% on Tuesday. This benchmark stands out globally with a 27% increase in pesos so far this year.
The high inflation (CPI), which was 6% in January and reached 98.8% in the interannual measure, induces investments in the stock market as hedges, comment the operators.
“We continue to work from the macro and the micro, so that inflation drops significantly, and we hope that, towards the end of the year, the CPI will be close to 3%, with annual inflation of ‘about 60%,’ said the deputy economy minister, Gabriel Rubinstein.
Markets: the Argentine stock market is improving with selectivity and activity while waiting for the external trend
The main stock index S&P Merval gained 0.7% to 249,897 units. Global dollar bonds lose 1.2% on average with country risk of 1,962 points
Lucas Yatche, head of strategy and investments at Liebre Capital, said that “inflation in January was 6%, leaving behind November’s 4.9% and December’s 5.1%. In addition, the INDEC CPI was higher than the 5.6% projected in the REM. The reacceleration of inflation is explained by the sharp rise in seasonal and regulated tariffs with respective increases of 7.9% and 7.1%. Core inflation increased by 5.4%; similar to 5.3% in December. Where seasonal and regulated prices in January had a greater impact than in December, they explained 37% of the monthly CPI”.
“Several forces explain why inflation remains at these levels. Among other factors, seasonality -they will return in March with schools, supplies and textiles-, tariff adjustments, the gross issuance of money, the growth of remunerated liabilities, the quasi-fiscal deficit, the less fluidity of currencies for supply imports they cause domestic prices to mark the gap. To permanently reverse this inflationary trend, more fiscal policy is needed – further adjust the decline in real expenditure and the primary deficit; where economic policy may not have such degrees of freedom in an election year,” Yatche said.
Financial Services Consulting He said “this month’s index doesn’t appear to have captured most of the beef upside. If February were to come back above 6% monthly, the year-over-year would be over 100%, which confirms that Massa’s strategy would only have succeeded in delaying an inevitable inflationary acceleration”.
Financial Week: Dollar Bonds Fall 5% Despite Treasury Debt Buyback Announcements
Argentinian bonds suffered from falls on Wall Street and market risk aversion. The free dollar fell to $377 and the exchange rate differential was less than 100%. The BCRA sold 286 million USD on the market and the reserves fell
Dollar bonds traded with an average decline of 0.3%, according to the Global securities of the exchange – of foreign law – of Wall Street. He countries at risk of JP Morgan drops a whole for Argentina, in the 1,969 stitches basic.
Foreign markets were watching U.S. retail sales data on fears that high inflation and a tight labor market could prompt the Federal Reserve to push further interest rate hikes this year. The main indicators of Wall Street lost 0.4 percent.
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