The following day, the exchange of the debt into pesos began for the left foot for Argentine assets: dollar-denominated bonds fall more than 2% and New York-listed shares lose up to 6%.
In the opening of the wheel, among the most affected cards is the AL30, which yields 2.2% and accumulated losses of 10.6% in the first ten days of March.
The performance of bonds at the top of the wheel leads to the fact that country risk, which measures the excess cost of Argentine debt, it rises to 2.2% and reaches 2182 basis points. The JP Morgan indicator thus reaches its highest level since last January 3rd.
At the same time, Argentine stocks in New York continue to be dragged down by the negative wave of Wall Street, which reopened lower with losses of 0.2% of the Dow Jones.
Since Tuesday Federal Reserve Chief Jerome Powell said the interest rate could continue to rise, markets have been showing losses.
So this Friday all ADRs are in red, with Central Puerto leading with a decline of 5.3%, followed by YPF and Despegar with 5.1%.
the Merval falls
locally, Merval loses 2.4%while the market is digesting the complex result of the debt swap into pesos carried out yesterday by the Government and which obtained a lower adhesion than expected.
“Poor result of the exchange that managed to liquidate only 23% of the maturities with private individuals (the deadlines that really matter in any roll over). The decision of private investors not to exchange more than 75% of the shares despite the very high real rates offered demonstrates that the debt will continue to be very short-term”, underline from Aurum Valores.
Against this backdrop, investors are becoming more cautious, also paying attention to drought data, which already shows the impact on activity and dollar inflows will be strong, which leaves the government less leeway to control the exchange rate and renewal of debt in pesos.
Economist Salvador Vitelli indicated that so far in March, exporters entered the market for $309 million. This represents a -76% decline from the first seven rounds in March 2022. The average daily settlement is $44 million, a 50% decline from the historical average and 67% below the March 2022 level .
Due to poor asset performance, financial dollars continue to rise. The most notable increase is that of the MEP dollar, which is traded on the Buenos Aires stock market $380, an increase of 15 pesos in the week.
With today’s 1.1% increase by the MEP, it is already above the blue dollar, which today falls by two pesos and returns to $371thus cutting the entire rise of the week, which on Wednesday brought it to touch 378 dollars.
The rise can also be seen in cash with liquidity, the path chosen by companies to become dollarized, advancing by 0.9% to $390.
Source: Clarin
