After several days of declines, Argentinian assets are taking a break and moving with a clear uptrend. On the one hand, dollar bonds extend the rebound they had tested on Wednesday and with which they operate it rises to almost 5%. On the other hand, stocks also show improvement and increase, driven by solid listings of Argentine companies on Wall Street.
“A more decisive rebound risks putting Wall Street to the test, as a breather after the recent weakness, while the US Treasury rate is monitored, in front of which domestic assets take advantage of it to recover ground even in a context in which political uncertainty prevails and economical,” explained the economist Gustavo Ber.
Therefore, dollarized bonds add up to second day of streak, after two weeks of closure in the red forts. After midday, Argentine stocks rallied as much as 4.8%, as was the case with Global 2046. Meanwhile, Global 2030 Bond, the main object of the government buyback, recovered 3.9%.
“This sharp rally comes after several days of declines by sovereigns that come in with very similar performance to their emerging peers, albeit with a higher beta. However, among pairs, those that tend to go in the same direction or move with a similar beta to Globals, this wheel did not,” they indicated in Delphos.
“Wednesday’s return to GD35, for example, has only been surpassed on two occasions which were the result of particular situations such as the inauguration of the Minister of Economy in July or the agreement with the IMF in January last year”, they added. In the local market on Wednesday several traders reported that a rumor about a possible debt swap it could have supported rallies.
In this less adverse context, country risk falls by 2.7% and is moving away from the 2,200 point area it was flirting with days ago. The JP Morgan Banking Indicator stands at 2,069 units.
Source: Clarin
