The positive effect of the news that Saudi Arabia and Russia were working on an agreement to reduce oil production was quickly diluted. The Uncertainty about the impact that the coronavirus pandemic will have on the global economy returned to seize international financial markets this Friday, which turned red again at the end of the week.
Despite this, and contrary to the trend of Wall Street benchmarks, it was highlighted today that sovereign bonds in local dollars were growing again and causing a new fall in country risk.
Driven by rumors that accounted for an alleged request for greater speed to resolve the debt restructuring, by President Alberto Fernández to the Minister of Economy, Martín Guzmán, fixed income securities in dollars under foreign law grew between 2.9% and 5.1%, while those operating under local law climbed up to 6.9%. Given that scenario, the country risk was descending 169 units to position itself in 3708 basis points.
In the variable income segment, meanwhile, the Buenos Aires Stock Exchange improved again this Friday due to opportunity purchases. In the midst of the uncertain context that exists in financial markets around the world, the local stock market rose selectively underpinned by opportunity purchases of good liquidity stocks.
After exceeding one million infected worldwide, the focus logically remains on the rate of expansion of COVID-19 and the response of governments to its advance.
“We believe it is a good opportunity to gradually accumulate shares, with a small part of the portfolio pointing to a recovery in the long term,” said a brokerage.
The Leading Stock Index S&P Merval grew 1.93%, at 26,505 units, and had most stocks trading higher. Among the improvements, the shares of Cablevisión Holding stood out, which rose 10.1%, and those of Holcim Argentina, with an improvement of 8.4%.
For the shares of Argentine companies listed on Wall Street, meanwhile, the trend was mixed. There, the adrs showed improvements of up to 11%, led by IRSA, and followed by Transportadora de Gas del Sur, which rose 5.1%. At the other extreme, on the other hand, the setbacks of Corporación América, which lost 6.2%, and Edenor, with a decline of 4%, stood out.