Mild rise of the dollar and lower the country risk in the new political scenario

El dólar abrio en alza. 13.05.2019 Foto Maxi Failla

On the side of the bonds, the beginning was also negative with the main stocks trading lower, although with the passing of hours they stabilized and ended up. The Bonar 24 closed stable.

This change in trend was reflected in the country risk -the rate that Argentina pays to get into debt with respect to the performance of US Treasury bonds- that began the day with a rise of 0.7% to 958 basic points. and ended with a decline of 3.7%, to 911 points.

On the monetary side, the Central Bank again validated a drop in Leliq rates of three basic points that led to 71.44%. The total awarded was COP 208,776 million and with this operation, a liquidity contraction of COP 13,065 million was generated.

For its part, the Merval rose 0.7%, while the ADRs, the Argentine shares traded in New York, was reversing the sharp initial declines.

“We saw a local market that reacted very calmly to the political announcements that occurred during the weekend,” said José Bano, of InvertirOnline. “The reaction of the fixed-income market was also calm and on the side of shares the day opened in negative territory but ended with green numbers.”

For Ezequiel Zambaglione, head of Research at Balanz, the effect of the announcement of formula K on the markets went from neutral to positive. For the analyst, “a more moderate Cristina, and a limited capacity to increase her intention to vote is the reason behind our positive bias: the reaction of the ruling party and moderate Peronism (of moving away from Cristina and betting on a third option, or support) will be the main factors to monitor in the coming days. “

For Gustavo Ber, “the surprising announcement of the formula Fernández had at the end a calm and expectant reaction from the investors. A scenario of greater electoral uncertainty could accelerate the times of greater dollarization, for which the Central Bank would be forced to draw the direct interventions in order to avoid shocks in the currency before hedges that interrupt the exchange rate stability “.

In addition to the local situation, the markets were influenced by global financial variables, in a week that will also bring uncertainty on that side. But yesterday “luckily there was a tailwind for the emerging countries it was a positive wheel, especially for the bonds,” said Nery Persichini, of GMA Capital.