Although dollar bonds recorded the majority of declines this Tuesday after recent economic data that cast doubt on a rapid recovery of the economy, Local stocks rose up to almost 6% and ADRs operating on Wall Street closed with a majority increase.
On this day, sovereign bonds in dollars registered declines, led by Global 2046 (-3.1%), followed by Bonar 2035 (-1.6%), and the Bonar 2041 (-1.4%).
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In this context, The country risk stood at 1,442 basis pointsjust one unit below the previous closing.
INDEC reported on Monday that Argentine GDP fell 5.1% in the first quarter of the year and that Unemployment in the country rose to 7.7% in the same period, which calls into question a rapid economic recovery of the country.
“The best thing that can be done to reactivate the economy is to continue fighting to exterminate inflation,” said Iván Carrino, economist at ICYA Consuming.
“Once again, political noise would be imposing itself on the local market and setting its pace”said Personal Investment Portfolio.
It should be noted that the Senate approved with modifications the Bases law promoted by the ruling party that must now be endorsed by the Chamber of Deputies with the changes or persist with the original version.
Shares and ADRs
For its part, the S&P Merval index gained 0.7% to stand at 1,570,734.290 units, while measured in dollars it advanced 0.8%.
The stocks that rose the most were those of Silver Commercial Society (+5.5%), BYMA (+2.8%) and Cresud (+2.5%). Along the same lines, the Argentine papers listed on Wall Street (ADRs) also exhibited an upward trend, with Free market in the lead (+3.8%).
“The Merval in Argentina remains very consolidated, just above 1,500,000 points, without taking a clear direction in the short term. However, In the medium term, an upward trend is maintained in the Merval and it could continue to risesince, so far, it has not regressed too much downwards,” said Alexander Londoño, of ActivTrades.
