Sunday , June 13 2021

Black Monday for S & P Merval: fell 3.9% to its lowest level for almost 4 months

Faced with skepticism by investors about official measures to curb inflation leading index S & P Merval the Argentinean Markets and Markets (BYMA) he stepped back 39% for 30,786.64 points, its lowest level since the beginning of the year.

The decline is driven by the shares of Supervielle Group (-6.8%); Banco Francés (-6.6%); and Grupo Financiero Galicia (-6%).

Thus, domestic stocks were adjusted to the 8% loss suffered by the ADR on the last Thursday when the domestic stock market was not operating.

They were negotiated for $ 592 million in a round of just 28 increases and 57 losses (plus 10 articles that ended unchanged).

Within the negative outlook for local assets, Agrometal (+ 6.9%), Carboclor (+ 6.1%) and Petrobras (+ 2.6%), all in the panel.

"Unfortunately, the cost of all Argentine assets continues to suffer, and investors continue to lose stocks and bonds because of the poor implementation of measures taken by the national government to reduce inflation among the investment community.""said Rava's analyst.

It is the investment community that the launched plan is only palliative to limit negative expectations in the short term and even in some cases doubts about its effectiveness.

"Economic measures, interpreted as selective and transitional, ignoring the causes of inflation and imbalances, had a negative response to investment," said Gustavo Ber, an economist at the consulting firm Ber.

The government has announced a series of measures last week that seek to keep galloping inflation and trigger consumption in times of crisis that seriously compromise the chances of re-election to President Maurizio Macri.

In order to make things worse, from technical analysis, operators warn that "the fact that they have thrown 31,000 points increases the chances of searching at 26,000 points," which is 15% less than the current level.

Fixed income

In the fixed-income segment, bonds deepened their downward trend due to investors' mistrust of President Macri's administration over the possible default scenario.

The most punitive titles were those of the short part of the curve nominated in foreign currency: Bonar 2024 gives 2.3%; 2020 Bonar, 1.9%.

Finally, Argentina's Argentine risk, measured by JPMorgan, fell to seven units, 844 basis pointsafter touching 858 points early and reaching peak levels from 2014 onwards.

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