FILE – A NYSE sign was seen on the floor of the New York Stock Exchange in New York on June 15, 2022. Shares are opening lower on Wall Street on Tuesday, August 9, 2022, led by a steep drop for Norwegian Cruise Linea. The S&P 500 is down 0.2% just after Tuesday’s opening bell and the Nasdaq and Dow Jones Industrial Average are also down. (Photo AP / Seth Wenig, file)
The market starts become impatient for having known the fine print of the “Piano Massa”. Before the debt swap proposed by the Ministry of Economy and amid strong suspicions over the persistent decline in the Central Bank’s reserves, Argentine assets are being punished again. Dollar bonds are down by up to 4.5% and country risk resumes its upward path.
On Wall Street, shares of Argentine companies are no better. Edenor’s ADR drops by 9.5% to practically wipe out their profits so far this month and with nearly every local listed company on the New York market operating strong reds. Edenor’s collapse occurs after the company showed up on Monday a balance that has disappointed investors.
PPI analysts pointed out that the company “reported sales revenues of $ 36,729 million, down 6% in real terms compared to the same quarter of 2021. This result is mainly due to the delay in adjusting tariffs, inflation and the growth of its operating costs “.
At the same time, they added that “Edenor announced that it had recorded higher operating income losses and higher financial losses in the second quarter mainly due to the deferred payment of obligations with the wholesale electricity market”.
With this local scenethe Merval index also suffers and loses 0.9%. Due to the rise in the parallel exchange rate, measured in dollars, the Buenos Aires stock market has so far only gained 1.3% this year.
In the debt segment, bond prices show the persistent distrust of investors on the direction of the economy, even with the latest change of figures from the economic team. Bonar 2038 appears to be the most affected, with a drop of 4.5%.
With these falls, sovereign bonds interrupt the good run, after closing the first round of the week with a positive sign. And the country risk jumped by 2.8% to 2,430 points.
“In recent weeks, the country risk seems to exist stabilized around 2,400 basis points after the peak observed in July of nearly 3,000 points, “they pointed out to Delphos.
NEITHER
Ana Chiara Pedotti
Source: Clarin
