BUENOS AIRES, May 7 (Reuters) – Argentina’s government securities fell on Friday due to selective sales and reduced deals, in an area of extreme caution awaiting progress in debt refinancing amid a complex second wave of COVID- 19 that tends to slow down the economy.
“Fixed income, and more specifically sovereign bonds in dollars, continue to move in negative territory, so much so that despite high yields in dollars, the investing public ends up opting for other investment alternatives in such a way that mistrust and uncertainty the market ends up hitting their prices even more, “said Noelia Bisso, analyst at Rava Bursátil.
Argentine President Alberto Fernández and Economy Minister Martín Guzmán will travel to Europe over the weekend to seek support in debt negotiations with the International Monetary Fund (IMF) and the Paris Club.
The country, which must pay about 2.4 billion dollars to the Paris Club, met a maturity with the IMF that was reflected in the level of reserves of the central bank (BCRA) by decreasing 188 million dollars to 40.304 million, according to official data at the Thursday.
* OTC bonds lost an average of 0.2%, given a country risk of the bank JP.Morgan that rose seven units, to 1,585 basis points, at 12:45 local time (1545 GMT).
* Industrial Manufacturing Production (IPIm) in Argentina shot up 32.8% year-on-year in March, basically due to the bad comparative level of a year ago when the quarantine began due to the pandemic.
* The Buenos Aires S&P Merval stock index rose a sustained 2.53% to 50,635.45 points, after improving almost 1.5% in the previous two sessions. Business moved to the rhythm of ADRs in New York.
* In the foreign exchange sphere, the wholesale peso devalued a slight 0.04%, to 93.83 / 93.84 per dollar, with the regulation of prices and liquidity of the central bank (BCRA) that seeks to buy currencies on a daily basis given the seasonal sales of grain exporters.
* In the dynamic alternative segments, the currency fell to 157.8 units on the ‘CCL’ stock market and rose to 153.8 on the ‘MEP dollar’, while it remained stable in the marginal band at 151 per dollar.
(Report by Jorge Otaola; Edited by Hernán Nessi)