Argentine stock assets traded mostly in the red this Wednesday, amid political tensions that capture the attention of investors and at a time when inflation indicators show a marked slowdown. Despite this, the risk country It still operates in the area of 1,200 points, its lowest level in almost four years.
At 5:20 p.m., after the completion of operations on the New York and Buenos Aires stock exchanges, the risk country that JP Morgan measures advanced 31 units for Argentina, up to 1,205 basis points.
The government of Javier Milei On Wednesday, he faced a massive march against cuts to universities implemented to clean up public accounts.
“The focus of attention will remain on the political level, while the legislative treatment of the fiscal package is developed, and the ruling party seeks consensus in the run-up to sending the new ‘Bases Law’ to Congress,” said the compensation and settlement Bridge in a report.
The stock market benchmark S&P Merval of Buenos Aires lost 3.5%, in the 1,202,668 pointsaffected by short profit taking, while sovereign bonds in the Electronic Open Market (MAE) lost 1.4% in their average in pesos.
Argentine stocks experienced the second straight session with profit taking this Wednesday, after having reached their highest dollar prices since June 2018 on Monday. In the case of dollar bonds, now in the USD 60 area , these are their best prices since they were listed on the secondary market since September 2020, after the sovereign restructuring with private creditors.
The ultra-liberal president Javier Milei, who has broad social support according to recent surveys, points to strong Argentine growth, the liberalization of the market and ending high inflation.
A recent survey of inflation expectations carried out by the Torcuato Di Tella University showed a significant deceleration for April, revealing an average expectation for the next 12 months of 98.5%, compared to the previous 123.8%.
The vice president of the Central Bank, Vladimir Werningsaid in a presentation in Washington that the entity expects inflation to fall to 9% this month and to 5.8% in May.
“The BCRA cannot accelerate the ‘crawling peg’ above the rate in pesos without conditioning the dynamics of the MULC (Single and Free Exchange Market),” he reported. Personal Portfolio Investments. He also estimated that “accelerating the pace of devaluation to one similar to inflation to avoid deepening exchange rate appreciation is not possible without affecting the accumulation of reserves.”
The Economist Gustavo Ber He explained that “domestic assets are once again weaker as they are once again leaning towards a correction – after the impressive bullish streak – while the political and economic signals are analyzed.”
“This is due to the fact that investors are now more expectant of the negotiations for the Bases Law, seeking to validate that the government achieves legislative approvals as well as improves the sustainability of the financial surplus that has been achieved in the first quarter. Said progress will seek to be complemented by signs of a slowdown in core inflation and the continuity of the accumulation of reserves within the path that is necessary to follow to gradually lift the stocks,” said the head of Estudio Ber.
