In July, Argentine stocks and bonds jump up to 50% due to the higher expectation of a debt agreement

Regarding the fixed income segment, for its part, the bonds in dollars under Argentine law made progress of up to 50%, such as the Discount (DICA), given the expectation and then confirmation of the equal treatment (in relation to debt under foreign law) that these titles will receive in the debt swap with local legislation. Within this sub segment, Bonar 2037 (AA37) also rose strongly, with + 39.6%; the Bonar 2020 (A020), with + 36%; and Bonar 2024 (AY24), with + 27.7%.

There were also some larger, but more punctual, increases in species under New York law: Bonar 2048 (AE48) shot up 79.6% and Bonar 2026 (AA26) 68.8%, according to Tavelli.

Faced with a context of higher inflation expected in the coming months, bonds that adjust for CER stood out among the securities in pesos, achieving increases of up to 39.4% (Par), while on average they climbed 15% in the month.

In relation to Wall Street, the month was marked by the presentation of company balance sheets, the growing conflict between China and the United States, rumors about possible vaccines for Covid-19, lapsed back in quarantine, and above all, the announcement of how it continues fiscal plan to help the private sector, especially regarding the continuation of extra payments on unemployment insurance, reported the senior economist at Econviews.

In the EU, the most important was the presentation of a stimulus plan for 750 billion euros, which increased the weakness of the US dollar, which reached its lowest level since 2018, and accumulated the largest monthly drop in a decade.

Regarding the local foreign exchange market, the official wholesale dollar appreciated 2.6% in the month, aided by the BCRA’s managed float, which had to sacrifice reserves (about $ 400 million, according to market sources) to keep it at bay, even in a month of foreign exchange inflows. Meanwhile, Sharp increases in financial dollars: the “cash with liqui” jumped 19.2% to $ 124.10, while the MEP or Stock Market shot up 21.6% to $ 122.21. In the parallel market, blue rose almost 8% ($ 10) to $ 136.

In turn, the private Badlar rate yielded 2.4% in July, almost matching the expected inflation for the month.

Last day of the month

With a more cautious tone, the Buenos Aires stock exchange closed lower this Friday, awaiting news on debt restructuring.

BYMA’s leading index fell 0.3% to 49,253.62 units, with a trading volume of $ 1,071.56 million. The balance sheet showed 113 increases, 75 losses and 12 papers without changes.

The highest rise for the day was recorded by Grupo Financiero Valores (+ 3.3%), while the steepest drop corresponded to Transportadora de Gas del Sur (-2.5%).

For his part, lSovereign bonds improved up to 6.1% led by issues denominated in dollars, so the Argentine country risk fell seven units to 2,271 basis points.

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