This Friday, the United States Stock Exchange trades with a reduced wheel due to a holiday. Despite this, the Argentine country risk continues its upward streak and scores another maximum consequence of the collapse of dollar bonds. The shares, for their part, are trading down after the prohibition of financing tickets abroad.
Country risk adds up to 44 units in the last round of the week and takes the indicator to touch a new maximum level for the last 14 months, that is, since Argentina closed the debt swap in September 2020. At that time, the index was above the 2000 points.
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From the PASO 2021, the index produced by JP Morgan rose more than 320 points. The strong rise is explained by the drop in the price of dollar bonds. Since the price of a security is inversely proportional to its rate, the drop in its value on the screens triggers returns and, with them, drives country risk.
What does country risk measure? The difference between rates of the sovereign bonds of each nation with respect to the yield that pays a security of the United States, considered free of risk.
An indicator that is close to 1900 points expresses that if the National State wanted to go out to issue debt in the international market should pay a rate above 19%. Experts indicate that the market is still waiting for the economic plan and, in addition, has doubts about the possibilities of Argentina to pay its debts.
Argentine stocks and bonds collapse
Without the US market benchmark, bonds Argentines in dollars collapse this Friday and score drops of up to 3%. At mid-round, the main losses were for the titles to 2030 (AL30D), which fell 3.1%. They were followed by the Global bonds to 2035 (GD35D) and the AL29D, with a decrease of 2.5% each.
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The ActionsInstead, they are traded on Wall Street in a reduced wheel. The papers of local origin show important losses. The 16% drop in Takeoff, after the decision of the Government to prohibit the financing in installments of the trips abroad.
The ADR, that is, shares that are listed simultaneously in Buenos Aires and New York, also have a majority of red numbers. Tenaris and YPF papers recorded the highest losses, with setbacks of 7% and 6.7%, respectively.
At the local level, the S&P index Merval, leader of the Buenos Aires market, 6.2% collapses. In the main panel, the losses of Central Puerto, Banco Macro, YPF, Transportadora de Gas del Sur and Cresud exceed 8%.