The firm recovery on Wall Street pushes increases of up to 9% for Argentine Stocks abroad

Hand in hand with strong gains in Wall Street indicators, the Argentine shares that are traded abroad climb up to 9% this Monday, due to a better investment climate after the oil company state YPF will improve its debt swap offer, at a time when the Government negotiates an agreement of extended facilities with the Monetary Fund International (IMF).

Among the ADRs of Argentine companies that are traded in dollars on Wall Street, at 4:20 p.m. the gains of 8.8% for YPF (USD 3.97), and 6% for Mercado Libre and IRSA Commercial Properties. It should be remembered that YPF’s ADR has fallen by 20% in January.

“One of the main drivers where we maintain our focus corresponds to the restructuring of the debt with the IMF ”, indicated a report by Portfolio Personal Inversiones.

“The YPF debt restructuring (for USD 6.2 billion) will be a key for local equity investors to monitor. The solution to YPF’s debt problem will be a good sign for the markets, where the company will be able to focus on its productivity and improve results, having solved this problem, ”added Portfolio Personal.

YPF said in a statement that the deadline for accepting the offer was postponed until Friday, February 5.

In an effort to bring positions closer to investors, the YPF’s board of directors decided to adjust the combination of cash and new securities Guarantees maturing in 2026 offered to holders of the bond maturing in March 2021, a company source said.

“By virtue of the rebalancing between cash and securities, 2021 bond holders will receive a greater amount of cash, reducing in equal measure the new covered bonds maturing in 2026 delivered in consideration for their securities entered into the exchange, ”he explained.

The stock index S&P Merval of Buenos Aires improved 2.8% to 49,622 units, after accumulating a decrease in pesos of 5.8% during January, which measured in dollars reached 12 percent. Shares of state oil company YPF rose 5.4 percent.

Sovereign bonds in the Open Electronic Market improved an average 0.3% and the risk country of Argentina prepared by the JP Morgan bank fell five units, 1,440 points basic, according to the rise in the prices of bonds in dollars with foreign law, of the order of 0.5% on average.

This Monday, the risk rating agency Moody’s noted in a report that in a persistently weak economy risks in Argentina remain high as the severe contraction that began in 2018 has intensified.

Stocks bounce on Wall Street

After having resigned a resounding 2% last Friday, the New York’s major indices rose as much as 2.5%, led by the Nasdaq tech average after last week’s sell-off, as a shift in retail investor frenzy toward silver drove the banking and mining stocks, while the market watched the dialogue on the economic stimulus in the US.

President Joe Biden will meet Monday with 10 moderate Republican senators to discuss the proposal to reduce their $ 1.9 trillion COVID-19 aid package, as Democrats prepare to push legislation through Congress without support from the Republican Party.