On three-wheelers, Merval shares rise by more than 12%: better global humor or electoral gamble?

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Shares of Argentine companies have been up on Wall Street for three days this Wednesday, and the S&P Merval piles up a 12% improvement over the past three rounds.

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While the mood is better in global markets this week, the City believes the rally in Argentine stocks has had a political flavor behind, after former President Mauricio Macri dropped out of the presidential race last weekend.

“The market understands this the power of news and makes the PASO elections Together to change the space. In addition, it conditions the Frente de Todos, which has yet to define its candidates (it is very likely that Cristina Fernández will not be a presidential candidate in this context) and an electoral strategy less than 140 days before the primaries, ” said Martín Polo, of Cohen.

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Major New York indexes closed lower Tuesday, led by the Nasdaq, which fell 0.4% after rising in the week’s first session. Despite this more cautious backdrop on Wall Street, Argentine ADRs sparked a second round of improvements, led by Telecom stock, which rose 8.6%.

This Wednesday, they’re up an average of 2%but there are increases of up to 4% (YPF).

These gains support the Merval Index, which closed more than 4% higher on Tuesday when measured at the price of settled cash. All cards operating in the local stock market ended up with improvements. In any case, they are not enough to cancel the reds accumulated during this month.

“After the correction that the local index had, in which it reached values ​​of 210,000 points after having dropped by almost 20% from the highs reached at the beginning of the year, The Argentine market seems to be reacting in the opposite direction to what is happening on Wall Street causing strong increases in shares and fostering an optimism that until a few weeks ago was unpredictable”, said Mauro Natalucci, from Rava, at the end of the conference.

Argentine bonds also showed gains on Tuesday, reaching 2.7% in the case of the 2038 dollar Bonar. And this Wednesday they take a similar step, with hikes of up to 2.10%.

Country risk fell by 1.7% to 2,477 basis points.

“Surprisingly, after five days of declines, Globals and Bonares finished their first round of positives since the announcement of the dollar public sector bond program (03/22) versus their emerging peers, which finished with slight declines,” they claimed about PPI.

“Stocks denominated in New York law rose 0.5% to 1% along the curve, while those denominated in local law rose 0.4% to 3.4%,” they detailed.

Source: Clarin

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