Beyond this, from the beginning of the day, main Dollar securities were very takers, something that was reflected in several consolidated increases at the close, which reached up to 9.6%, as recorded by the title Argentina 2027. But firm increases were also observed in the centennial bond, which climbed 6, 8%; Bonar 2024 (D), which gained 4.4%; from the local law pair (D), which appreciated 4.2%; of the Bonar 2020 (D), which advanced 4.1%; and Bonar 2037 (D), which added 2.2%.
Faced with this, the Argentina’s country risk, measured by the JP.Morgan bank, plummeted 9.75% and was one step away from drilling 2,000 basis points: it closed at 2,027 units, a new low since mid-February.
Argentina and its main creditors “They reached an agreement on the day of the date that will allow them … to support Argentina’s debt restructuring proposal and grant the Republic significant debt relief,” affirmed in the early hours of Tuesday the Ministry of Economy through a statement. With last minute changes, it was possible to improve the NPV of the offer from US $ 53.5 to US $ 54.8, for each sheet of US $ 100, considering an exit yield of 10%,
The operators celebrated this agreement since it would lead to the exchange achieving a high level of adherence and thus finally being able to successfully close a long and hard negotiation. “The positive dynamics of Argentine stocks after the agreement could push the country risk towards 1,000 points in the future,” projected economist Gustavo Ber.
Rava analyst Joaquín Candia remarked that “this was news that the market had long awaited and that is why the prices of bonds issued in foreign currency saw their prices rise.”
In any case, the progress observed on the day was from highest to lowest, among other reasons, due to the complex economic situation in which Argentina is mired, and which has yet to be resolved, beyond clearing up a core issue on Tuesday to begin to believe in recovery.
Traders are aware that the favorable debt resolution was a necessary condition, although not sufficient, in order to move forward with the agenda of economic challenges facing the country, fueled by the pandemic.
“Although in the last 48 hours the bonds and shares rose 10% measured in dollars, today we have not had euphoria because Argentina ahead has still many issues to fix. I think that is the underlying reason why we did not have exaggerated increases this Tuesday ”, pointed to Ambit Emilse Córdoba, director at Bell Bursátil.
“From here on, the market is going to measure the decisions made by the Government, for example, on how to cover the deficit, if it stops issuing or not,” said Córdoba.
It is worth noting that although there is an agreement with the main funds, the Government again extended the exchange offer until August 24, while the settlement date of the operation is kept on September 4. “Although there is still time to know the success of the operation, with the announcements of the consortiums known this Tuesday we can estimate that there will be a high percentage of acceptance, sufficient to activate the Collective Action Clauses (CACs) and in this way it would be possible to restructure all the debt without the risk that later holdouts will arise “, Candia added.
Actions, from highest to lowest
After a significant initial gain, the Buenos Aires stock exchange erased the increases towards the end of the day and BYMA’s S&P Merval index lost 0.6% to 52,186.30 units.
The leading panel it jumped almost 7% at startup, to reach an intraday record high of 56,114.04 units.
A relevant fact to highlight was the significant volume operated, which reached $ 4,273.1 million, of which the shares of Grupo Financiero Galicia represented more than 32% of the total traded.
Regarding the performance of the day, the increases in Edenor (+ 5.1%) and BYMA (+ 4.7%) stood out, while on the other hand, the banking sector stood out with Supervielle (-3.3%) and BBVA bank (-3.3%) leading the losses.
On Wall Street, the ADRs of banks and energy companies were the most demanded at the beginning of the day by the foreign operators oriented to the “trading”, in search of tactically taking advantage of the “momentum” – from punished valuations – according to the the bondholders
But, with the passing of the hours, many investors began to take profits, taking into account the strong increases on Monday (up to 12.5%), and those that occurred this Tuesday before noon (up to 17%).
Consequently, at the end of the day, the moderate increases in IRSA Commercial Properties (+ 6.1%); Loma Negra (+ 4%); YPF (+ 4.6%); Transportadora Gas del Sur (+ 3.8%); Ternium (+ 2.5%); and YPF (+ 2.3%).
For his part, banks ended with losses of up to 1.7%, with the exception of BBVA, which gained 0.9%. Earlier, some papers climbed up to 17%.
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