The bonds nominated in dollars, like Argentine stocks listed on Wall Street, They are already celebrating the approval of the Bases law with increases that reach 10% for the titles that are already operating. In the world of cryptocurrencies, those who seek to obtain the price of the dollar through this channel, which is usually very similar to that of the Dolar blue They already see drops in the price of the ticket close to 4% and calm in the exchange market may appear again this day.
The market shows its enthusiasm before the opening for stocks with increases for the Adrs which reach 6.7% for YPF, Edenor 6.3% and 5.2% for Transportadora de Gas del Sur. In the financial sector, the increases are led by Supervielle, which climbs 5.2%.
Argentine dollar-denominated bonds gain across the curve, with bonds maturing in 2029 enjoying the biggest gains, rising 2.1 cents to bid at $57.1, MarketAxess data showed.
The bill passed after a marathon debate, with senators voting on each item in the package designed to boost investment by divesting from state entities and providing incentives to businesses.
The view of the market
Finally, the Base Law project was approved in the Senate, which is positive for Argentine stocks, a trigger for significant increases (several ADRs are trading with strong increases in the US pre-market). “We speculated that, until the fate of the law is defined, the Merval could take a break from its upward trend to enter a lateral path, and this is what happened“, they point out from Delphos Investment.
They remember that, when the law received its commission opinion, the S&P Merval climbed to the maximum of its lateral range at US$1,350, but, from there, after a series of events that showed political weakness of the ruling party, the benchmark index suffered a 15% correction in dollars. Now, the approval of the Base Law contributes for its content, and also for what it means, “in terms of political achievement in a framework of great uncertainty“.
Therefore, it would not be surprising if the Merval returns to its range ceiling and, if we follow the pre-dictation market logic, we could expect the index to break this sideways path to rise above the ceiling of $1,350. But, this would imply an increase of 13%, so, if it takes place, it would not be surprising that I know of more than one wheel.
Waiting for inflation
During this afternoon Indec will announce the national retail inflation for the month of May, with the expectation being that of a new slowdown in the general monthly trend of prices, as well as the core register. As a reference, the REM-BCRA points to an inflation of 5.5% m/m in the month while for CABA inflation in May slowed to 4.4% m/m.
