Argentina’s country risk has once again fallen below 500 points, in a week where the country’s stocks showed a rebound of up to 6% after a challenging August for the markets. This week, Argentine assets found greater demand, benefiting sovereign bonds and resulting in a slight decrease in the dollar.
Sovereign bonds remained firm, leading to a reduction in JP Morgan’s country risk, which decreased by 24 basis points, reaching 490 points, the lowest level since August 17. In the currency market, the dollar exhibited a marginal decline, with a significant volume of offers and a limited amount of purchases by the Central Bank.
The S&P Merval index of the Buenos Aires Stock Exchange recorded a weekly gain of 2.2% in pesos, closing at 3,049,122 points. The price of oil also contributed to the strong performance of Argentine stocks, with an increase of 9%, pushing the price of Brent crude above USD 96. YPF, for instance, saw a growth of 3.3%, reaching USD 52.
Financial securities also stood out, with Grupo Galicia advancing 3.3% in dollars, followed by Banco Supervielle (+4.3%) and Banco Macro (+2.5%). Other sectors that showed improvements include Adecoagro (+6.2%), Bioceres (+6.1%), and Loma Negra (+5.5%).
A report from IEB noted that the macroeconomic situation has stabilized, with net reserves totaling USD 12 billion. However, the report also warns that the volatility of local assets will increasingly be influenced by the current government’s policies rather than general economic fundamentals.
On the international front, New York stock exchanges started September with mixed results, impacted by a jobs report in the United States that exceeded expectations, increasing the likelihood of an interest rate adjustment by the Federal Reserve at its upcoming meeting.
Finally, the wholesale dollar was set at $1,508, showing a decrease of 4 pesos since the previous week. The Central Bank of the Republic of Argentina established a ceiling of $1,885.14 for its foreign exchange band regime, keeping the exchange rate stable.
Source: www.infobae.com
