In the first market reactionsafter the approval of the Bases lawthe Argentine stocks on Wall Street They operated with a majority of increases, as did the dollar-denominated bonds, but then the papers of national companies listed in New York reversed that trend and fell up to 3%. Meanwhile, the firms listed on the leading panel of the local stock exchange mark an improvement in prices in their first entries.
As stated, this happens after Congress approved ambitious laws with which the Government seeks to broadly deregulate the country’s economy. In this context, the leading index S&P Merval of Buenos Aires gains 0.29% and reaches 1,640,488.41 units.
However, operators said that liquidity levels are reduced on the day due to the position closures in June, so very short-term profit-taking was not ruled out.
The stock exchange has accumulated a gain of around 75% in the year, encouraged by service actions thanks to certain tariff exemptions. However, without any euphoria to highlight so far.
Sovereign bonds and country risk
In that context, andl Global (GD35D) leads the increases with 1.5% followed by Global GD41D with 1.1% and the Global GD46D 1%. For the rest of the sovereign securities denominated in dollars, the increases are marginal, but the wave is green.
For the shares listed in the New York market, the same thing, they all operate in green and the increases are led by them Tenaris with more than 3%; Galicia Financial Group rises 2.4%; Vista Energy 2.4%; the Loma Negra cement plant with 1.1%.
As the economist explains Gabriel Camanothe reaction is expected to be positive, with the sanction of the Bases law and reincorporation to the fiscal package of Profits and Personal Assets “this focus of uncertainty is closed and a stage is reaffirmed where the market increasingly focuses on the delivery of specific issues: flexibility of the stocks” .
Joel Lupierieconomist at EPyCa, comments in dialogue with Ámbito that, the approval of the law clearly, “It is a milestone for this Government, but a priori I would say that what we see in terms of the progress of financial assets is going to be a little limited.“.
For the economist, it is likely that today there will be a certain degree of euphoria and national assets will rise again strongly, but as long as the Law still does not bear real and tangible fruits in the economy, “that euphoria is going to decrease“, since he considers that the approval of the law was already discounted in the increase in assets,”both bonds and stocks listed on Wall Street“, and this approval is only a realization of what the markets already expected.
