Argentine shares rose up to 8% on Wall Street and country risk fell for the first time in 5 wheels

Argentine shares rose up to 8% on Wall Street and country risk fell for the first time in 5 wheels
Argentine shares rose up to 8% on Wall Street and country risk fell for the first time in 5 wheels

Government decided on a political reorganization, after Milei will fire the Chief of Staff, Nicolás Posse, and appoint the current Minister of the Interior as his replacement, Guillermo Francos. “Francos is one of the most important elements of the Government, he is a complementary opposite to Milei”stressed political analyst Juan Mayol.

In turn, the former president of the BCRA, Federico Sturzenegger, will occupy a new ministry linked to economic deregulation, Francos announced at a press conference.

Beyond this, operators remain attentive to the lack of progress in the Senate in the committee’s treatment of the so-called Bases law and the fiscal package promoted by the Government. “Francos’ appointment is a very welcome political opening, with massive dialogue, which Posse lacked. Likewise, the market needs laws to come out to begin deregulating the economy once and for all”said a financial agent from the private bank Macro.

Milei is in the United States, where this week he plans to meet with high-level executives from Google, Meta and Apple.

S&P Merval

In the Buenos Aires stock market, the leading index S&P Mervalrose 0.2% to 1,575,417.130 units, after having risen 3.4% at the beginning of the week.

In this framework, the actions of the leading panel that rose the most were Edenor (+4.5%), Northern Gas Carrier (+2.7%) and Southern Gas Carrier (+2.5%).

Initially, the first reaction of the markets to the departure of the Chief of Staff Nicolas PosseWith Silvestre Sivoriholder of the Federal Intelligence Agency (AFI)seemed to be more negative in the sovereign bond segmentwhich had started off, but as the hours went by they turned around and began to operate mostly in positive territory.

However, the economist at Epyca ConsuloresJoel Lupieri, He pointed out to this medium that the change of Cabinet “can increase the chances that the basic law will be approved of the Senate and that, if this happens, in the coming days, the bonds should recover.” It remains to be seen how long it takes for the new Chief of Staff to take the helm of the management and the evolution of prices will probably be tied to this, according to his vision.

Thus, as pointed out Juan Alraportfolio manager at Southern Trust, “you have to be attentive to the movement of bonds at a local level and be alert to the movement of securities from emerging countries to be able to differentiate”, but considers that, without a doubt, “a cabinet change generates uncertainty and can negatively impact assets.”

Dollar bonds

Dollar securities closed with a majority of increases, after a bearish start. Those that rise the most are Global 2038 (+3.2%); he Bonar 2041 (+2.7%), and the Global 2035 (+2.4%).

Consequently, The country risk prepared by the JP.Morgan bank fell 1.9% to 1,416 basis pointswhich represents his first fall on five wheels.

Meanwhile, the bonds in pesos with CER curve mixed, the falls were led by the PARP (-2.6%); he DIP0 (-1.4%); he TZX26 (-1.1%), while those that rose the most were PAP0 (+1.9%) and the TX28 (+1.8%). The dollar linked They closed unevenly and BOPREAL with generalized falls.

Since Monday, the local market shortened the usual transactions within a period of 24 hours (T+1), from the previous modality of 48 hours (T+2), to align with the United States and Canada. Traders said that this variant has a very marginal impact on transactions with stocks, bonds and mutual funds.

Finally, the Ministry of Economy will hold a tender for Treasury peso securities on Wednesday, with the projection of renewing maturities for at least 3.5 trillion pesos.

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