The index S&P Merval de Bolsas y Mercados Argentinos (BYMA) rose 0.6% to 42,747.55 units, accumulating an improvement of around 7.5% this week. The positive trend of market it kept in line with its regional peers.
The most important increases were registered by the actions of Comercial del Plata (7.7%), Transener (6.6%) and Transportadora de Gas del Norte (6.4%). While the most pronounced falls were noted by Telecom (-2.9%), Central Puerto (-1%) and Securities (-1%). The ADRs on Wall Street closed disparate: Irsa with a drop of 1.7% Edenor with a rise of 5.8% mark the extremes.
The Argentine markets strengthened their upward price trajectory due to expectations of an agreement with creditors, despite the fact that the Government saw it possible to close a deal with only a part of its creditors.
“The Merval rose driven by the good reception of the new exchange proposal for
government debt, where an agreement with creditors could be closer “, clearance and settlement agent Neix said. He added that “bank ADRs have recovered between 12% and 15% in the last week.”
It should be noted that, after the market closed, the Ad Hoc group of creditors, led by the powerful investment fund Black Rock, expressed its rejection to the new conditions that the government proposed.
“We did our best,” Guzmán had said. told Reuters before the news was revealed in an interview at his office in Buenos Aires, adding that “clearly” there was no room to further improve debt restructuring conditions.
It is worth remembering that local financial markets They will be closed Thursday and Friday for holidays.
Bonds
Sovereign bonds ended with an average improvement of 1.4%, led by the trend of longer-term securities nominated in dollars, at a time when the country risk, measured by JP Morgan, fell 1.4% to 2,311 units.
The most traded bonds, meanwhile, ended with minimal variations. While, in the week, assets accumulated an average 6.1% improvement.
Wall Street
The New York Stock Exchange was back on the bullish track after its first July crash on Tuesday, now fueled by several tech giants that pushed the Nasdaq to a new record.
The Dow Jones Industrial Average main index ended with a 0.68% gain, at 26,067.28 units. Meanwhile, the Nasdaq index – with a strong technological component – rose 1.44% to 10,492.50 points.
The titles of the giants Amazon (+ 2.70%), Facebook (+ 1.13%), Apple (2.33%), Microsoft (+ 2.20%) and Netflix (+ 1.95%) all finished at all-time highs.
In turn, the expanded S&P 500 index – which is listed by the top 500 companies and is the main benchmark for investors – rose 0.78% to 3,169.94 units. Although the closing was positive, the day was very volatile.
For National Securities’ Art Hogan, there is tension “between investors who estimate that economic data is improving in stages and linearly and investors concerned about the rise in Covid-19 cases” in the United States.
The United States exceeded 3 million coronavirus infections. The pandemic leaves more than 130,000 dead in the country, the most affected in the world in absolute numbers.
In addition, the market is turning to the second-quarter earnings season for S&P 500 companies.
According to data from the consultancy Factset, analysts expect a drop of almost 45% on average in net profits between April and June over the same period in 2019.
Investors, however, “know that (the results) will be very bad, but they look forward and not backward,” Hogan said.
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