BUENOS AIRES, Apr 5 (Reuters) – Argentina’s assets were operating with limited improvement on Monday amid a greater appetite for global risk following US economic data indicating growing economic strength, although at the local level caution continues for the economic future and slow negotiations with the International Monetary Fund (IMF).
“Most of the Argentine assets are waiting expectantly for two drivers: negotiations with the IMF, and legislative elections this year,” said Portfolio Personal Inversiones (PPI).
The third largest economy in Latin America shows a slight recovery amid negotiations with the IMF for an agreement on extended facilities, a pandemic that slows the economy, and mid-term legislative elections to be held in October.
“The decisions remain subordinate to the PASO (primaries) elections on August 4 and midterms on October 24,” said Roberto Drimer, an analyst at VatNet Research.
* The S&P Merval stock index of Buenos Aires gained 0.6%, to 48,272.95 units, at 12:40 local time (1540 GMT), in a selective business market after registering a loss of 0.93% during March .
* “While the majority of Argentine stocks remain stagnant since the beginning of the pandemic, others manage to recover from the hand of greater activity and better prospects for the future,” added PPI.
* Bonds in the over-the-counter segment were trading with an improvement of 0.2%, as they reactivated their activity after the Thursday and Friday Easter holidays. The benchmark title ‘Bonar 30’ improved by 0.85%.
* The country risk measured by the JP.Morgan bank rose three units, to 1,593 basis points, close to its historical maximum level of 1,669 units recorded at the beginning of March.
* “In the short term, if there are no surprises, the maximum that can be aspired is to return to 1,500 points,” estimated Roberto Geretto, an economist at Fundcorp.
* In the exchange segment, the interbank peso depreciated 0.26%, to 92.23 / 92.24 per dollar, in a place with liquidity regulated by the intervention of the central bank (BCRA).
* During March, the BCRA bought some 1,475 million dollars from the wholesale market, the highest monthly volume since November 2019.
* “Everything seems to indicate that the next (exchange rate) challenge will only arrive in August, a month in which there is already less liquidation of the agricultural harvest, there are high maturities in pesos for the Treasury, the dollar will have accumulated a certain delay along throughout the year, and the October legislative elections will be ‘just around the corner,’ “Geretto said.
* The peso in the alternative segments operated at 148.6 units in the ‘CCL’ stock market, at 141.85 in the ‘MEP dollar’ and at 141 units in the informal segment.
(Reporting by Walter Bianchi; Edited by Eliana Raszewski)