The Argentine stocks erased their initial gains this Wednesday May 8 in the Buenos Aires stock marketand the dollar bonds operated with a downward trend, at a time when attention is focused on political issues regarding the Senate’s treatment of the Bases law promoted by the ruling party and prior to a massive general strike called by the unions to reject it.
The S&P Merval lost a 0.9%, to 1,450,498,790 unitsafter falling 2.2% on Tuesday after marking a record level in pesos of 1,505,718.34 points.
The declines were led by the shares of Transener (-4.8%); Northern Gas Carrier (-4.2%); and Cresud (-2.4%).
It was after the Government made official the payment regime to settle the debt that CAMMESA maintains with the electricity generating companies through Resolution 58/2024 of the Ministry of Energy, published in the Official Gazette.
Meanwhile, the Chamber of Deputies approved the Basis law to deregulate the economy last week and it is now being discussed in committee in the Chamber of Senators for a subsequent vote scheduled for next week.
The libertarian president Javier Milei seeks that Congress endorses its government plan through the approval in the Senate of a broad fiscal plan and deregulation of the economy.
“We believe that the approval of these laws combined with the ability to build consensus through dialogue with other forces helps answer the underlying questions regarding the sustainability of the adjustment and, ultimately, of Argentina’s ‘investment case’ “, they said from Adcap Securities.
In this framework, the main union centers called for a general strike on Thursday against the adjustment policies promoted by Milei.
Bonds and country risk
In the fixed income segment, sovereign bonds fell up to 3% (Bonar 2038), after recent increases, while the Country risk measured by the JP.Morgan bank rose 1.5% to 1,237 basis points.
In turn, the BOPREALES registered falls of up to 2.2%, led by the BPOC7 (Series 1).
“Although the international climate affects the performance of our bonds, local factors also influence. In this regard, the evolution of the treatment of the Bases law and the fiscal package in the Senate will be crucial,” said a specialist.
