National asset advances were led by the roles of the financial sector, after the main creditors will show signs of rapprochement and the search for an understanding, beyond rejecting the new offer of the Government.
Among the highest increases of the day, the papers appeared from Grupo Financiero Galicia (+ 8.5%), Grupo Supervielle (+ 5.8%); of the BBVA bank (+ 5.8%), of the Banco Macro (+ 5.4%), and within the climate of strong ups and downs that they have been experiencing, to the rhythm of the mood of the north and of the news around the exchange of the debt.
In this way, in the weekly accumulated Argentine ADRs achieve increases of up to almost 25% (Galicia).
Last Monday Argentine assets had experienced Strong increases after the diffusion of the official proposal that improved the conditions for the bondholders. However, on Thursday they reversed part of those profits, given the rejection of the main creditors of the new offer of the Government.
“After the statement from the main groups of creditors, the ´wait and see` (wait and see) between operators awaiting the evaluation of whether negotiations will resume”said one analyst. It is worth remembering, anyway, that the Minister of Economy Martín Guzmán announced that the proposal represents the “maximum effort” that the country can make.
Argentine bonds
Although more moderately, Argentine bonds follow the trend of stocks with average improvements of 0.3% in their dollar quotes among the main references, while country risk remains around 2,350 basis points.
After the statement from the main creditors’ committees, in which they reject the latest improved offer, investors are delighted with the possibility of resuming negotiations since the large bondholders left the door open to return to dialogue to continue polishing the differences economic and legal.
“Their participation is essential to aspire to activate the CACs (Collective Action Clauses), especially when the differences in net present value are already reduced and they would also only need to agree on other aspects in the legal clauses, so there is still time to resolve satisfactorily”, said the economist Gustavo Ber.
Wall Street Shocks After Record Hike In US Covid-19 Cases
The three main Wall Street indexes were moving without a definite direction this Friday in the face of the nervousness of the market after a record increase in cases of coronavirus in the United States.
The Dow Jones Industrial Average rose 51.32 points, or 0.20%, to 25,757.41 units. The S&P 500 fell 1.53 points, or 0.05%, to 3,150.52 and the Nasdaq Composite was down 43.31 points, or 0.41%, to 10,504.44 units.
Wall Street futures rose before the market opened after Gilead Sciences said that new data from an advanced-phase study showed that its antiviral remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients.
More than 60,500 new COVID-19 infections were reported in the United States on Thursday, according to a Reuters count, a new daily record. Some 41 of the country’s 50 states reported increases in cases in the last fortnight.
“Investors are paying more attention to new contagion discoveries than economic data, and that is a pattern that we have seen develop in the last two weeks,” said Art Hogan, strategist at National Securities.
A set of economic data, including a record addition to monthly payrolls, points to a revival of business activity in June, fueling a spike in US stocks.
The S&P 500 has climbed more than 40% from its March lows and remains 8% below the record high it reached in February.
The tech sector was the biggest drag on the top three indices, a day after it pushed the Nasdaq to its third closing high this week. The banking sector gained 2.2% before the presentation of results next week.
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