The local market is on a roll, as the S&P Merval broke a new record in dollars on Monday after climbing 2.4% to 2,360 units. Also, country risk sank to 2018 levels. Analysts believe this is due to the “credibility” of the economic path.

“The positive sentiment continues for Argentine assets, following some announcements that reinforced the credibility of the country: the payment of capital and interest on bonds and global coupons, and the REPO to the Central Bank (BCRA),” Eric Paniagua, an analyst at Epyca Consultores, told Herald sister publication Ámbito.

Stocks on the rise thanks to the banks

Banking stocks rose the most during the day. BBVA went up 9.3%, followed by Supervielle (+7.6%) and Banco Macro (+6.4%). They amounted to the highest trading volume with 53%, followed by Oil Gas (which includes Pampa Energía, Transportadora de Gas and state-owned YPF) with 38%, according to data from Grupo IEB. It is worth noting that the stock with the highest volume continued to be the state oil company with 28%.

“There were foreign reports again about banks and utilities. They also spoke quite well of the repo Argentina took. The fact that Argentina has returned to the markets with a repo is good news, and mostly affects the financial sector first,” say sources in the Bullmarket Brokers Research team.

According to them, what is rising the most are the shares that had been recommended a week ago by J.P. Morgan and Goldman Sachs. An analysis by Barclays will also begin to circulate today. “the repo, the reports and perhaps something connected to the exchange rate,” they list as the fundamentals of this rise.

ADRs also rise on Wall Street

On Wall Street, Argentine shares also show an upward trend for the most part, led by Banco Macro (+5.2%), Loma Negra (+4.8%) and Supervielle (+4.2%). This is an interesting rise motivated mainly by international reports.

Bonds are on the rise, and country risk has dropped below the 600-point mark

In the same vein, financial analyst Leonardo Svirsky mentions that “the bond and stock rally continues, as the news coming from the government creates a lot of expectation for the future.” This week, he adds, there’s the payment of interests and amortizations of sovereign bonds, “and that generates a lot of confidence in the market.”

Bonds are trading today with increases of up to 1.4%, led by the Global 2041 (GD41), the Bonar 2035 (+0.8%) and Bonar 2041 (+0.8%).

Country risk is on the decline this Monday, standing at 578 basis points, below the 600 mark for the first time in more than six years (2018).

Svirsky is enthusiastic about the future. “With this, plus the possible agreements with foreign organizations, plus the inflow of fresh dollars, it is very likely that we could see a country risk at a level of 400 points in the not too distant future.”

With information by Ambito.com