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Argentine stocks rose up to 7% on Wall Street after the general approval of the Bases Law in Deputies - Infobae
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Las acciones argentinas subieron hasta 7% en Wall Street tras la aprobación en general de la Ley de Bases en Diputados
Los títulos bancarios encabezan la tendencia de los ADR. El S&P Merval marcó un nuevo récord nominal en los 1.360.000 puntos. Leve baja de los bonos en dólares, aún cerca de sus precios máximos de 2020
www.infobae.com
April 30, 2024
Bank securities lead the ADR trend. The S&P Merval set a new nominal record at 1,360,000 points. Slight decline in dollar bonds, still close to their maximum prices in 2020
New positive wheel for Argentine assets. (REUTERS/Brendan McDermid)
The second version of the Bases bill obtained general approval in the Chamber of Deputies minutes before 9 in the morning with 142 affirmative votes (106 against), thanks to the majority support of the dialogue blocks (PRO, UCR, Hacemos , Federal Innovation and MPN). However, the approval of the particular chapters will be long given that key points such as the Income tax, the large investment regime, labor reform and tobacco taxes could still be rejected or modified.
The favorable momentum for the official initiative, considered key by Javier Milei 's administration , gives a bullish foundation to stock market assets. The S&P Merval of the Buenos Aires Stock Exchange rose 2% at 3 p.m., to 1,335,000 points , after having registered a nominal record of 1,360,232 units in the morning , above the previous intraday maximum of 1,334 .440 points achieved during the round on February 5 of this year.
Measured in dollars “counted with settlement” the S&P Merval reached 1,230 points, a maximum since June 2018.
The shares and ADRs of Argentine companies traded on Wall Street led the increases, even though this is an extremely negative session for the New York benchmark indices, which are down 1 percent. The titles that gained the most are those of the banks -Galicia, Macro, Supervielle and Francés-, they rose by 7% in dollars. Two hours after the closing of Grupo Galicia's business, it rose 4.6 percent.
Meanwhile, Argentina's dollar bonds fell 0.2% on average this Tuesday, according to the Globals' gain from the exchange - with foreign law - on Wall Street. JP Morgan's country risk , which measures the rate gap of US Treasury bonds with similar emerging issues, rises five integers for Argentina, at 1,213 basis points. The ten-year Treasury rate rises five basis points, to 4.67 percent.
In order not to repeat the same mistakes that led to the failure of the first debate in February, the ruling party managed to impose that the project be voted on by entire chapters , without entering into the debate article by article, and without any intermediate room. “They want to say little so that it happens quickly, so that the treatment is as dark and less transparent as possible,” denounced Germán Martínez, president of the Unión por la Patria bloc. In this context, with 134 votes, the declaration of emergency in administrative, economic, financial and energy matters was approved for a period of one year.
“Achieving approval would be very important to be able to move forward with reforms and give greater sustainability to the fiscal surplus, which is a crucial anchor at this stage on the way to a comprehensive stabilization plan that includes the exit from the stocks. This milestone could reactivate investments that contribute to improving economic activity, as it is accompanied by a more orderly economy and with inflation clearly slowing down,” explained Gustavo Ber , economist at Estudio Ber.
“During the fourth month of the year, we have had another positive month for Argentine financial assets, which continue to show euphoria and expectation, as the first measures of the new government with a more market-friendly stance begin to be seen. At the same time, macro data began to reveal some symptoms of improvement, such as the increase in international reserves and a considerable slowdown in inflation,” commented Maximiliano Donzelli , Research Manager at IOL (InvertirOnline).
“Now moving on to talk about Argentine fixed income, sovereign bonds, these have had a significant rise, with a positive yield of between 7% and 9% in dollars. Although there was news that generated an impact on the price of these assets, from the IOL InvertirOnline Research team we understand that the increase responds to certain support for the adjustment measures of the new government that seek to try to order the macroeconomic imbalances that still affect to the Argentine economy,” Donzelli said.
