Markets: the stock market rises and the Merval index remains above 250,000 points

In a context where the main global stock markets are not defining a trend in the face of a possible more aggressive rate adjustment than expected, the local stock market is trying to return to the positive path, with a Merval panel maintained above 250,000 points.

This Wednesday, the S&P Merval of the Buenos Aires Stock Exchange is beginning to recover, with up 0.6% to 252,300 points at 11:20 a.m., still far from the nominal record of 267,000 points in pesos reached in January. The panel of flagship stocks maintains in 2023 an increase of 24% in pesos and 12% in dollars “counted with cash”.

Galician Financial Group recorded a net profit of $22,283 million in the fourth quarter of 2022, compared with a profit of $17,514 million in the same period of 2021 (+70% compared to the previous quarter and +27% year-on-year) . This advantage represented, on an annualized basis, a return on average assets (ROA) of 2.89% and a return on average net worth (ROE) of 14.82%.

The aforementioned result is mainly composed of the gain of the stake in Galicia ($20,303 million), FIMA Funds ($1,554 million), Galicia Seguros ($559 million) and Naranja X ($215 million). The market was expecting a fourth quarter profit of $20.580 million. Net operating income in the fourth quarter was $195,797 million (+8% quarter over quarter and +30% year over year). Operating income reached $96,601 million in the fourth quarter of 2022 (-0.4% compared to the previous quarter, +45% year-on-year). Net income for fiscal 2022 reached $51,460 million, which represents, on an annualized basis, an average ROA of 1.66% and an average ROE of 8.78%.

Transene reported a consolidated net loss attributable to shareholders of $851.5 million in the fourth quarter of 2022, compared to a loss of -$459.6 million in the same period last year. The market expected a loss of 674 million pesos. The decline in results is mainly due to the drop in turnover and the increase in operating expenses.

Transener’s consolidated sales reached $6,341 million in the fourth quarter of 2022, or 14.5% less than those of the last quarter of 2021. The rate adjustments determined by the ENRE in May 2022, retroactive to February 2022 (67% for Transener and 69% for Transba), were not sufficient to maintain the level of income at a constant exchange rate. Consolidated EBITDA in the fourth quarter was -$908.9 million compared to $1,035.9 million in the fourth quarter of 2021, mainly due to a 14.5% decline in revenue and an 11.7% increase in operating expenses. In 2022, the company realized a gain of $1,709.9 million (attributable to shareholders) compared to a loss recorded in 2021 of -2,547.9 million, mainly due to a lower income tax expense due to the effect of the tax rate increase in 2021 on deferred tax.

Cuyana Gas Dispenser reported in fiscal year 2022 a loss attributable to shareholders of 967.2 million pesos. AND Windmills of the Rio de la Plata reported net income of $8,197.6 million in fiscal 2022, compared to net income of $5,510 million in the same period a year earlier. Revenue from ordinary activities (net sales plus service and other revenue) in 2022 reached $138,344.7 million compared to $130,486.7 million last year. Operating income reached $3,766.4 million in 2022 vs. the 4,812.3 million ARS of 2021.

Argentine dollar bonds are trading with an average decline of 0.4%, according to the benchmark for global foreign securities on Wall Street, with a country risk at 2,103 points basic.

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