The growing political tensions between the Government and Congress generated speculative rearrangements of portfolios.
Assets react to economic dynamics.
Depositphotos
After opposition deputies gave half a penalty to an increase in pensionsit began to be created a climate of pessimism in the stock market. So, dollar bonds continued the bearish rally and in some cases with losses of up to 13% in four days. He risk countrywhile, It was on the verge of 1,600 points. The S&P Merval sank more than 4% and ADRs lost up to 6%.
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“The only reason I see is what is happening within Congress. If we look at the economic numbers, everything is improving, but from there, at least for now, the signs are not good,” he told Ambitthe analyst Leonardo Svirsky. “In my humble opinion the drop is already very exaggeratedbut we are all waiting for what may happen with the Bases law,” the expert added.
“The worst round of the week for bonds. The bad mood continues after the political setback that the government had yesterday with the law that Deputies approved. Next week there is another litmus test in the political part since the Bases law is discussed on June 12,” he indicated. Nicholas Cappellain the view of the day made by The IEB Board. In this framework, the greatest reductions in debt hard dollar in the local square was led by Global 2038 (-6.1%), the Global 2029 (-5%), and the Bonar 2029 (-4.9%).
The debt in pesos showed, this day, generalized falls in assets tied to CER. The main decreases were for the PAP0 (-3.1%), the TZX27 (-2.7%), and the DIP0 (-23%). The BOPREALES ended with losses, the main ones for the BPOA7 (-2.2%), and the BPOB7 (-2.1%). The dollar linked were the only ones that ended in positive territory: the T2V4 (+2.1%), and the TZV25 (+0.5%).
“There have been four or five business days of decline. The market this week became spicier due to the political context. We have to wait if it calms down later. During the day, those that lost the most were the bonds, the equityin general, tends to have greater volatility,” he told Ámbito, Rafael Di Giorno, director of Proficio Investment.
In turn, from PPIanalyzed what could happen in the next rounds: “Looking ahead, if the administration manages to overcome the legislative obstacles allowing the Base Law to be approved and the situation with the Bank of China to be clarified we could observe a recomposition of expectations that stops the bleeding of local titles“.
S&P Merval and ADRs: another red day
In this frame, The leading index S&P Merval of Buenos Aires fell 4.3% on Thursday, after losing 0.7% in the previous session and collapsing 4.7% on Tuesday. The papers that fell the most were Northern Gas Carrier (-5.5%), Aluar (-5%) and Galicia Financial Group (-5%). Regarding ADRs, the main losses were for BBVA Bank (-6%), Galicia Financial Group (-5.2%) and Macro Bank (-4.3%).
