The Argentine stock market was trading down on Friday due to foreseeable profit taking after a recent bullish rally, while sovereign bonds rose slightly awaiting news about the country’s negotiations to extend debt with the Paris Club and the International Monetary Fund (IMF).
The dollar in the interbank segment appreciated 0.03%, to 95.14 Argentine pesos, in a place with liquidity controlled by the central bank with purchases or sales of dollars from its reserves.
The Minister of Economy, Martín Guzmán, said on Thursday in a speech that “within the list of macroeconomic objectives is the reduction of the exchange rate gap”, and pointed out that “the conditions that have been generated go in the direction of reducing it” .
“The country has been experiencing growth in reserves (from the central bank) ”and“ we have a path from external stabilization that today is more virtuous due to the increase in the value of commodities”He added.
In the alternative exchange circuits, the dollar rose to 165.51 units in the stock market counted with settlement ‘CCL’, to 159.15 in the so-called ‘MEP dollar’ and to 158 pesos in the informal exchange band or ‘blue dollar’.
In the midst of a worrying health context, with a strong second wave of coronavirus that places the country as one of the most affected worldwide, the market awaits the announcement of the next measures that the Government will announce.
“We have a stock market that is taking profits, on a day when external markets are not helping so much. This does not yet mean a change in trend, but for now a pause”Said a stock trader.
The S&P Merval stock index lost 3.05%, to 66,065.15 points, at 12:20 local time (1520 GMT), after registering an intraday record level of 69,688.41 points on Thursday and accumulating an improvement of around 15% in June.
The market “is waiting for the political framework that is beginning to come into play, and for the reclassification of Argentina within the MSCI indices that will be released on the 24th of this month,” explained Portfolio Personal Inversiones (PPI).
MSCI, the world’s largest index provider, analyzes whether Argentina will continue among the ’emerging’ countries or will descend to ‘frontier’ countries.
On the other hand, sovereign bonds in the over-the-counter segment rose an average 0.2%, led by the improvements noted in dollarized issues.
“The fixed income movie, particularly restructured dollar bonds, was slow and is now waking up. Something very positive for the market, considering that the country risk has to go to more normal levels”Pointed out PPI.
The country risk measured by the JP.Morgan bank remained stable around 1,474 points, far from its historical maximum level of 1,669 units recorded at the beginning of March.