The local stock market jumped 3.5% this Thursday, May 2, so the shares rose up to 7.5% hand in hand with the energetic and banking behind the lowering of rates of the Central Bank (BCRA). Meanwhile, the dollar bonds They closed lower and the risk country extended negative streak while the titles in inflation-adjusted pesos (CER) They ended with a majority of increases.
In that context, the S&P Merval advanced 3.5%, to 1,369,673.99 units, after accumulating an increase of 9.1% in April. In the leading panel, the papers that rose the most were energy stocks Southern Gas Carrier (+7.5%) and Pampa Energy (+7.4%), as well as banking BMA (+6%) and Supervielle (+5.9%). On the contrary, the only paper that went down was that of Stock Bank (-0.8%).
On Wall Street, Argentine stocks recorded the majority of increases: those that rose the most were Free market (+3.4%), Macro Bank (+2.6%), Take off (+2.5%) and Pampa Energy (+2.6%). Meanwhile, those that fell were Galicia Financial Group (-1.5%), BBVA (-0.8%) and Telecom (-0.4%).
The day featured the surprising decision of the Central Bank (BCRA) to lower its reference rate again by 10 points, to 50% annual nominalafter the decrease of the previous week due to the improvement in financial indicators.
After being approved on Tuesday in a marathon session the “Bases Law” Thanks to the support of legislators allied to the Government, which has few representatives in Parliament, the deputies also approved the tax reform proposed by Milei, who took power in December. Now the project must go through tough negotiations in the Senate.
“Being able to move forward with the reforms and the fiscal package is important in order to consolidate the sustainability of the fiscal surplus, not only because of its dynamics but also because of the political consensus that it would imply in seeking to extend the high social approval and also aspire to soon be able to reactivation of economic activity can be achieved,” remarked the economist Gustavo Ber.
Milei came to the presidency with the promise of deregulating the economy, defeating inflation and channeling the macro with a sharp cut in fiscal spending, in addition to getting out of the exchange rate trap.
“The idea is that at some point in the year we will open it” to the exchange market, Milei stated in a recent radio interview, but to do so “we need to do a few things,” he commented: “one is to finish solving the problem of trapped dividends, another is to end the paid liabilities.”
This is caused by the decrease in inflation and rate cuts. “This will also allow us to exit the BCRA’s positions and go to the Treasury.”. With which, we continue to clean the Central balance sheet,” he added.
On the external financial level, the United States Federal Reserve (Fed) held rates steady on Wednesday and signaled that it remains leaning toward an eventual reduction in borrowing costs, but warned of disappointing inflation readings and suggested possible stagnation in the move toward greater balance in the economy.
Bonds in dollars and pesos: how much they closed at today, Thursday, May 2
Bonds in inflation-adjusted pesos (CER) rose to 3.8% this Thursdayled by PAP0followed by DIP0 (+3.6%) and the TX26 (+1.5%). “The drop in rates causes Lecaps and short CERs to compress rates,” he told Ambit the director of Delphos Investment, Leonardo Chialva.
Meanwhile, the dollar-nominated bonds that are listed in Wall Street they fell until 2.9%headed by Global 2029followed by Bonar 2029 (-0.7%) and the Bonar 2041 (-0.4%). Meanwhile, the only ones who went up were the Global 2046 (+0.9%), the Global 2041 (+0.4%), the Global 2038 (+0.4%) and the Bonar 2038 (+0.3%).
Therefore, the country risk prepared by the JP.Morgan bank rose 20 units (+1.6%) to 1,236 basis points.
