Wall Street sold with news of the deal: ADRs reversed initial increases of 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 their 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%.

The same dynamic was replicated in the local stock market. After a strong initial profit due to the optimistic encouragement generated by investors, the announcement of the long-awaited agreement of the Government with debt holders, andl The S&P Merval index of Argentine Stock Exchanges and Markets (BYMA) closed down 0.6% at 52,186.30 units.

At the start of the wheel, the leading panel it reached a jump of almost 7%, to reach a record intraday high of 56,114.04 units.

Argentina and its main creditors “reached an agreement on the date of the date that will allow them (…) to support Argentina’s debt restructuring proposal and grant the Republic significant debt relief,” The Ministry of Economy said in a statement.

“We celebrate the agreement and stress that it is a key step and a necessary condition – but not sufficient – for the economy to start a recovery”, said the SBS Group. “How nice it feels to get up and that Argentina has solved a problem,” said Rodrigo Álvarez, economist at Analytica Consultora.

Beyond the euphoria observed at times during the day, in the market, operators are aware that the favorable resolution of the debt was a necessary condition, although not sufficient, to be able to advance with the agenda of economic challenges facing the country, powered by the pandemic.

Investors’ eyes will be directed towards this point from now on to validate the prospects for the valuation of assets, after the strong drive made by the debt swap, which was already discounting the operators.

Bonds and country risk

For the optimistic encouragement generated among investors by the early morning announcement of the long-awaited agreement Between the government and creditors for the debt swap, dollar bonds soared to almost 10%, taking the country risk to touch minimum levels since the end of February.

This is how since the beginning of the day, main Dollar bonds were very takers, something that was reflected in the consolidated increases at the close, which reached up to 9.6%, as recorded by the Argentina 2027 title. But there were also firm increases in the centennial bond, which climbed 6, 8%; Bonar 2024 (D), which gained 4.4%; del Par, which appreciated 4.2%; of the Bonar 2020 (D), which advanced 4.1%; and Bonar 2037, which added 2.2%.

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