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Argentine financial market begins April with ups and downs after US data and Easter holidays

BUENOS AIRES, Apr 5 (Reuters) – Argentina’s private and public securities showed notable operating selectivity on Monday, following the long Easter holiday and a greater appetite for global risk following data from the United States indicating economic strength growing in the North American country.

However, at the local level prudence continues for the financial future amid the start of a second wave of COVID-19, the slow negotiations with the International Monetary Fund (IMF), an April where a high settlement of US dollars is projected. grain exporters for the sale of their coarse harvest and in a mid-term election year in October.

“The market continues to be focused on short-term issues. Decisions continue to be subordinate to the STEP (primary) elections on August 4 and the midterm elections on October 24,” said Roberto Drimer, chief economist at the consulting firm VatNet Research.

Economy Minister Martín Guzmán told CNN television that “changing the ten-year term in the renegotiation with the IMF is a geopolitical negotiation that will not happen before May.”

* The Buenos Aires S&P Merval stock index gained 1.28% to 48,597.71 units as a provisional close, in a selective round of business after posting a 0.93% loss in March.

* The over-the-counter bonds turned in trend and turned negative towards the final part of the transactions with a final average of 0.3%, the same percentage recorded by the reference title ‘Bonar 30’.

* The JP.Morgan bank’s country risk rose four units, to 1,593 basis points around 5:00 pm local time (2000 GMT), against its historical maximum of 1,669 units recorded at the beginning of March since the reconfiguration of its base last September.

* In the foreign exchange segment, the wholesale peso depreciated 0.29%, with an unusual difference between the purchase and sale of 92.23 / 92.27 per dollar, in a market with the intervention of the central bank (BCRA).

* The entity had a purchase balance of just over 65 million dollars, said operators, after absorbing around 1,475 million the previous month. An official source of the entity said that “the collapse of futures rates continues without intervention from the central bank.”

* Argentina’s agricultural exports generated income of 2,774 million dollars in March, a record for the last 18 years, said the Chamber of the Oil Industry and the Cereal Exporters Center (CIARA-CEC) last Thursday.

* The weight in the alternative segments operated at 148.6 units in the ‘CCL’ stock market, at 141.85 in the ‘MEP dollar’, at 140 units in the informal segment and at 161.29 in the retail ‘solidarity dollar’ .

* Meanwhile, Argentine President Alberto Fernández is recovering after testing positive for COVID-19 on Friday night.

(Reporting by Jorge Otaola; Additional reporting by Hernán Nessi; Edited by Walter Bianchi)

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