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Likewise, the shares of Argentine companies listed on Wall Street ended the day with the majority of reversals, led by Transportadora Gas del Sur (-5.9%); Central Puerto (-5.1%); Banco Macro (-4.5%); Pampa Energía (-4.3%); Galicia Financial Group (-4.3%). The only increases for the day were recorded by Corporación América (+ 1.8%); Telecom Argentina (+ 0.5%); and IRSA Commercial Properties (+ 0.5%).
Major creditor groups said Monday that their recent debt restructuring offer is backed by bondholders who account for more than half of the country’s foreign debt. Financial institutions representing 60% of the Exchange bonds and 51% of the Global bonds pledged support for a joint proposal sent to the Argentine Government by the three largest groups of creditors on July 20, He pointed out a letter from the bondholders sent to the Argentine economy minister, Martín Guzmán.
“The relationship between the Government and the bondholders is clearly worn out, which is evidenced in the communiqués recently issued by the parties. However, on the other hand, the positions are so close that nobody is encouraged to kick the board”, analyzed from Delphos Investment.
Argentina, seeking to restructure some $ 65 billion in foreign debt, made a “final” offer in early July to its creditors, which largely rejected it, and announced that the deadline for acceptance of the public debt swap will expire on April 4. August, although at this time the possibility of a new extension is analyzed.
On the other hand, Wall Street closed with losses of up to 1.3% (Nasdaq) affected by the obstacles in the negotiations of a new package of assistance for the coronavirus in the United States, and the growing trade tensions between Washington and Beijing.
General panel: more volume and maximum volatility
After strong increases on Monday, up to 44% in some non-leading stocks, the general panel was once again the epicenter for investors focused on intraday trading, something that was evidenced in the volume traded in some papers and in some abrupt ups and downs, rare in the same action, in the same day.
The biggest increases of the day were for two real estate companies: Polledo and TGLT, which climbed 16.2% and 10%, respectively. Amidst high intraday volatility, The negotiation of the latter had to be temporarily interrupted by BYMA around 12:30 pm. and it was not restored during the rest of the day.
After the market closed, the developer sent a note to the exchange referring to a court ruling against him on a real estate project. “In relation to the Astor San Telmo project, the judgment of the Court of Appeals was notified to the Company, rejecting the appeals filed by all parties to the process and confirming the first instance sentence. The Company is currently evaluating the judicial decision and the actions to be taken in this regard. “
In addition, TGLT referred to the abrupt movements observed in the prices and volume of its papers this Tuesday, although it ruled out that there is some information that has generated such volatility: “Due to the fact that significant variations have been noted in the price and volumes of the shares traded, we inform that the Company is not aware of any circumstance that must be communicated under the terms of the regulation stipulated as relevant information by the Rules of the National Securities Commission and / or by the markets in which their listing and / or negotiation are authorized beyond what is indicated in the preceding paragraph. ”
Another action that had impressive volatility during the wheel was Boldt: it climbed 45%, and then in a couple of hours, it lost 20%, and later closed with a positive 4%. Decidedly not suitable for heart patients.
To take dimension of the growing interest of investors (aggressive and short-term) in these papers, the volume traded for both Boldt and TGLT was higher than most of the assets that make up the leading panel, and this Tuesday they were only behind Galicia, YPF, and Banco Macro. “This caught the attention of some investors who tried to take advantage of the volatility to obtain very short-term gains,” they commented from Rava.
Bonds and country risk
In the fixed income segment, the main sovereign bonds in dollars closed with a mixed trend throughout the curve and with parities ended at levels of 44/45%. On average, prices registered declines of just 0.5%.
On the one hand, slight improvements were recorded in A020 and AY24, which increased 0.2% and 1% respectively. While, the longest-lasting securities fell between 0.5% and 1.4%. “Going forward, concrete definitions on how the negotiations continue will be necessary to define a trend,” they commented from Portfolio.
With all country risk of Argentina, measured by JP.Morgan bank, rebounded 1.4% to 2,242 basis points.
In turn, and waiting for the last tender of the month, the bonds in pesos registered a slight improvement on average: those indexed by CER reflected increases of up to almost 2% (they accumulate an improvement of up to 9% so far this month). The TX24 and TC25 stood out, increasing 1.1% and 1.9%, respectively.
Regarding private sector dollar debt, a report by the Cohen Group estimated that “In 2020, as the market discounts a greater probability of agreement between the government and creditors, the yield on corporate bonds will begin to normalize.”
Currently, the range of yields of the ONs is wide: it ranges from 4.5 to 11% per year in dollars. “In a context of zero or even negative rates in the developed world, attractiveness is important”, the report remarked.
Under these arguments, from Cohen they weighted some issues in dollars, such as Banco Macro 2026, Pampa Energía 2023, Pan American Energy 2021, and Aluar 2024, “Recognizing the need to diversify between companies and sectors to mitigate risks.”
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