“There are four variables that lead the country’s risk to drop much faster than one would have imagined: the laundering was a success, inflation slows down, the Central Bank buys reserves and the economic team would eventually obtain financing via repo. Due to this news, bonds are in demand and country risk collapses. Now the new target is 800 basis points, It seems that the market forgot about the release of the stocks, the elections, and is confident that things will continue well. And unless there is some very strong noise at a global level, or the uncertainty of local investors increases, the outlook is that it will continue to decline.”agreed Fernando Marull, head of the economic consulting firm FMyA.
Investor optimism is also reflected in the Porteña Stock Exchangewhich rises 2.1% and is trading at 1,889,128 units. If this last value is adjusted by the dollar counted with settlement (CCL)the S&P Merval stands at US$1,609, a new high in the Javier Milei era and the highest level in constant terms since May 2018.
Argentine shares listed on the New York Stock Exchange (ADR) are also dyed green. The papers of BBVA they climb up to 7.1% during the wheel, followed by Supervielle Bank (+4,4%), Loma Negra (+4,2%), Banco Macro (+3,9%) y Telecom Argentina (+3,7%).
The Merval reached 2018 values
The financing news adds to a positive streak of reserve buybacks from the Banco Centraldespite the fact that in times of exchange restrictions historically it usually enters a selling position. So far this month, he managed to get US$1,053 million in the exchange market, and is on track to close the best October in terms of purchases since 2010.
“A good liquidation of agriculture (also atypical at this time), together with the increase in private loans in dollars, drives a dynamic that few expected weeks ago. We remember that the reason behind this seems to be a market convinced that the crawling peg of 2% of the official wholesale exchange rate will be maintained. The situation, although it does not solve the underlying problems, “It causes a positive momentum both in the exchange market and in the prices of alternative dollars.”remarked Juan Manuel Franco, chief economist of Grupo SBS.
This Friday, financial exchange rates are trading downwards. He dollar MEP It is trading at $1152.21, which means a drop of $7.8 (-0.7%). He cash with settlement It appears on screens at $1,172.98, about $6.6 less than Thursday (-0.5%), and thus the exchange gap compared to the official wholesale rate ($986) is reduced to 18.9%.
Free dollars present one of the lowest nominal values since the end of May rafastockbr – Shutterstock
Instead, the blue dollar sells for $1220 in the caves and trees that operate in downtown Buenos Aires, a daily advance of $5 (+0.4%). Even so, it remains one of the lowest nominal values since the end of last May.
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