After the long-awaited sanction of the Basis law for investorsthe Argentine stocks and bonds They closed this Friday with Most of the losses were seen, both on Wall Street and on the Buenos Aires stock exchange, since it seems that The market applies the maxim of “sell on the news.”
The Chamber of Deputies This morning, the party approved the Bases law and a fiscal package promoted by President Javier Milei to initiate the profound changes promised during the electoral campaign. The Government achieved key majority legislative support to accept the changes that the Senate had made, despite its minority in Congress, achieving a political victory that will allow him to show management capacity before the markets, at a time when the country is going through a severe economic crisis.
“The legislative achievement continues to be good news for a political force in a minority position in Congress, and which requested these changes as a basis to advance more quickly with its Government project,” commented from Delphos Investment. “These approvals will allow, on the one hand, to unblock private investments and encourage the entry of funds from abroad and, on the other hand, consolidate the fiscal adjustment to be able to continue advancing in monetary normalization,” they noted.
Regarding the reaction of Argentine assets, the tables described the classic “sell the news” as taking place, in the face of palpable profit-taking. “It seems that the market is more attentive to the exchange market and the new monetary regime than to the Bases law and all the announced deregulations,” he concluded. an operator.
In this context, dollar bonds that had started the day with moderate increases, They ended up with a majority of setbacks. Thus, the risk country Prepared by JP Morgan Bank rose to 1,456 basis points. Sovereign bond declines were led by Global 2035 (-3.2%); and Global 2038 (-2.6%).
Milei celebrated the legislative support by stating that the “largest structural reform” in Argentine history was achieveda prelude to the deregulation of the monetary system, he said during an interview. The libertarian added that “the stage of zero deficit has already passed” in the midst of an economy that “found a floor and is rebounding” along with comfortable numbers in “reserves.”
What was approved by Parliament is two voluminous bills with the central idea of attracting investment. The Bases law proposes tax benefits for multimillion-dollar investments, the privatization of public companies, changes in labor standards, money laundering and special powers for the president.
Argentine stocks and S&P Merval
The index S&P Merval of the Buenos Aires stock exchange fell 1.5%, after hovering around its record mark of 1,665,774.43 intraday points recorded at the beginning of the monthThis market is expected to accumulate a gain of around 75% in 2024, encouraged by service actions thanks to certain tariff releases.
The main declines among the leading stocks were for Central Port (-4.1%), Galicia Financial Group (-2.6%), and Telecom (-2.5%).
However, operators said that Liquidity levels are reduced during the day due to the closure of positions in Juneso very short-term profit-taking was not ruled out.
For their part, the shares listed in the New York market recorded generalized declines after a positive start to the day. Thus, the losses were led by the Central Port (-4%), Galica Financial Group (-3.4%), and Pampa Energy (-3%).
Joel Lupierian economist at EPyCa, told 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 advancement of financial assets is going to be a little limited“.
