One day after the government submitted its revised foreign debt restructuring offer to the United States Securities Commission (SEC) on Monday, the index S&P Merval de Bolsas y Mercados Argentinos (BYMA) lost 4% to 46,585 units.
The leading panel comes down 7.2% during the previous week and against the intraday historical maximum of 56,114.04 points recorded on August 4.
In this way, the S&P Merval adjusts its prices to the losses noted by Argentine ADRs, which lost more than 4% on average on Monday in New York.
This Tuesday, the weakness of the Argentine assets that operate on Wall Street spread, although with greater selectivity. The drops were led by the papers of Edenor (-4.3%), and Cresud (-3.4%); while the increases were led by the shares of Telecom Argentina (+ 3.6%); and from Loma Negra (+ 2.2%).
By decree, The Government confirmed the equitable treatment for the exchange of securities under local law, with the addition of an advance in the amortization of the new CER (inflation) bonds and an increase in the conversion exchange rate.
While the Foreign creditors have until August 28 to approve the agreement, the early offer acceptance period for local titles will be until September 1 and the late acceptance period until September 15.
“The Government took a very relevant first step by reaching a consensus with the creditors, since it allows companies to continue financing abroad, but it is necessary to generate confidence in the economic agents so that the investment can be recovered”, remarked from Allaria Ledesma and Company.
For his part, Rubén Pasquali, a financial analyst, said that there is “a more cautious attitude from investors”. The progress of the debt swap “will have an impact on the markets.”
Bonds and country risk
In the fixed income segment, Argentine debt was trading lower, amid a general market realignment after the presentation of the sovereign bond swap in New York.
Public securities averaged a loss of 0.8% on average, while the country risk prepared by JP.Morgan bank rose for the fifth consecutive day, advancing 18 units to 2,149 basis points, a new maximum so far this month.
Finally, the province of Buenos Aires reported on Monday that it extended the deadline for renegotiating its debt for four weeks, while the national government advances with the restructuring of some 65,000 million dollars in bonds.
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