The Argentine bonds were holding in positive territory on Monday as the Government continue to negotiate with International Monetary Fund (IMF) an agreement to adjust goals and advance disbursements to strengthen the reserves of the central bank (BCRA).
On Friday, the country paid a commitment with the IMF for some 2,700 million dollars through the use of Special Drawing Rights (SDRs) and yuan so as not to further hit the BCRA’s dollar reserves.
This week, another maturity for almost 1.300 million dollars is registered, to which another two for about 1.300 million dollars are added this month.
“A fundamental point to follow this week is the definition of the negotiation of the economic team of Sergio Massa and the IMF”said Portfolio Personal Inversiones.
“On the one hand, the rumors point to greater flexibility and, on the other, to a new, deeper agreement with a long-term sustainable solution,” he pointed.
Sovereign bonds in the over-the-counter segment improved a 0.7% On average, after advancing one 6.2% last week and accumulate a jump from 13.9% during June.
Confirmation of Economy Minister Sergio Massa as presidential candidate “it continues to generate significant repercussions on financial assets”Delphos Investment said.
The ruling party designated Massa as its candidate in the primary elections that will take place in August, ahead of the presidential elections in October, where the opposition is seen as preferred by a narrow margin according to polls.
Country risk, measured by JP.Morgan bank, fell five basis points to 2,032 units, compared to a record high of 2,976 units recorded in July last year.
In the stock market, the S&P Merval index of Buenos Aires fell a 0.38%, at 424,643.89 points, at 1:10 p.m. local time (16:10 GMT), after marking a historical maximum value of 442,749.42 units last week. The Merval rose a 24.61% during June.
“Argentina made a payment of 2,700 million dollars to the IMF and the economic team travels to the United States, which leads fixed income to continue on its upward paths”commented Priscila Bruno from Rava Bursátil.
The interbank peso devalued a 0.48%, at 257.95/258.00 units per dollar, under the liquidity regulation imposed by the BCRA with purchases or sales of dollars from its reserves. The entity ended June with a negative balance for its reserves of about 670 million dollars.
In the alternative circuits, the peso operated at a drop of 508.30 units per dollar on the stock market “CLC” already 483 in the so-called “MEP dollar”while in the referential marginal square or ‘blue’ it remained stable at 494 units per dollar.
Source: Reuters
Source: Gestion
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