Argentine assets chained this Wednesday a new upload in the thread. Both stocks and bonds have extended their rally, in a market closely awaiting any signals the US Federal Reserve may give this Thursday, when the latest inflation data for 2022.
Dollar debt obligations increased by more than 3% and country risk decreased againuntil it’s in the 2,000-point area. Since before the peso debt crisis in June of last year, the indicator measured by the JP Morgan bank has not reached such a low value. So far this year, the index is up nearly 10%.
Bond prices recover more than 40% from the lows reached after the farewell of Martin Guzmán of the Government and in the last two months they have extended a bullish streak.
Although Argentine stocks move in lockstep with emerging debt, analysts see the upside potential is higher and they don’t exclude that the market has started to do what it says in the jargon “electoral exchange”, that is, a bet that in this year’s elections there will be a change of political sign in the Government.
Hand in hand with this strong recovery, shares on the Buenos Aires Stock Exchange are also solid. Merval index closed 2022 up 130%which made it one of the few investments in the local market that managed to beat inflation and since the beginning of this year it hasn’t stopped going up.
This Wednesday ended with a 4.1% jump, which exceeds 6% when measured in dollars at the cash-settled price. Local market papers moved supported by strong gains on Wall Street, where Argentinean bank ADRs closed up by up to 8%.
“Argentine ADRs are unstoppable and in the few rounds to date of the year there are several assets that exceed 20% in dollars. Among these cases, banks mark this trend, Edenor joins and Pampa is a little behind with almost 15% in just seven wheels of the foreign market,” said stock analyst Javier Rava.
Thus, the Merval closed at 666 points (in dollars), a historic mark. The rise in dollars is higher than that recorded in pesos and is mainly due to the decline in financial dollars, above all the one that arises from the conversion through ADRs.
Source: Clarin
