“The ambition of an economic order clashes with an unstable political situation, in which the ruling party breaks bridges of support with governors and Congress. This will be a factor of volatility and risk that will accompany us in the coming months, which is why we suggest caution in positions”, said Martín Polo, Cohen’s strategist, recognizing that, Despite the developments on this front, the market “believes” in Javier Milei.
The escalation of political tension between the Casa Rosada and provincial governors negatively affects the prices of dollar bonds, even if Argentine stocks abroad appear to be showing some strength. Meanwhile, in the foreign exchange market, the parallel dollar drops againin a dynamic that seems foreign to political noise.
Dollar government bonds are in the red since before the opening of the markets, marked by the growing tension between the national government and the province of Chubut, and the new chapter of cutting the partnership with the province of Buenos Aires. THE Bonuses stack improvements up to nearly 13% so far this month.
The stock market is more resistant to political news. Even if on the local market the Merval index loses 0.1%, on Wall Street most Argentine companies are moving in positive territory this Monday. Banking sector stocks benefited the most, with increases reaching almost 5% in hard currency.
“January’s fiscal surplus, accompanied by the foreign exchange market surplus and the absorption of pesos by the BCRA, fuels the optimism of investors, who reward with a reduction in the exchange rate gap and a notable improvement in sovereign bonds,” sumo .
While, The “summer” continues on the foreign exchange market. Both the MEP dollar and the cash payments dollar decline again – the so-called “stock market dollar” gives another 1.8% and stands at $1,057; while the CCL drops by 1.2% and reaches $1,100.
“Several problems have influenced the lower pressure on the parallel bars: 1) the dismantling of dollar positions given the need for pesos, in the context of the liquefaction of savings and recession; 2) (prolonged) liquidations of exporters, of which in this new regime 20% goes to the CCL); and 3) progressive access to the MULC by importers and the new BOPREAL tenders, reducing the pressure they exerted on the free dollar”, they explained to the consultancy firm LGC.
On the street, the blue dollar follows the same trend and drops another $25 to reach $1,080. Since the beginning of February the free quote has lost $115.
SN
Source: Clarin
