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Argentine assets operate in decline, investors attentive to IMF, soybeans and COVID-19 vaccine

BUENOS AIRES, Nov 17 (.) – Argentina’s bonds and stocks fell on Tuesday on profit-taking, in a market with its sights set on the government’s negotiations with the International Monetary Fund (IMF), the high prices of the soybeans and progress in developing a vaccine against COVID-19, operators said.

Argentina is seeking a program of extended facilities before the international financial body to renegotiate a loan for 57,000 million dollars, of which some 44,000 million dollars have already been disbursed.

“It starts on Tuesday and after a start to the week with a majority of green (rise in bonds and shares) within the local market, the focus remains on the mission that the IMF has been carrying out,” said the consulting firm Portfolio Personal Inversiones.

Investors monitor public spending and the exchange rate gap as developments around a coronavirus vaccine and the election of Joe Biden as president of the United States are topics that tend to help emerging markets, market sources narrowed. .

In turn, the Argentine Chamber of Deputies will seek on Tuesday to give half a sanction to a bill that seeks to raise some 300,000 million pesos (about 3.75 billion dollars) through a unique and extraordinary tax contribution of great fortunes to finance state assistance.

* OTC sovereign debt yielded an average 0.6%, after advancing 2.7% in the previous four wheels, with the benchmark “Bonar 2030” that fell 1%.

* The JP.Morgan bank’s country risk rose 29 units, to 1,352 basis points around 12:45 local time (1545 GMT), returning to the levels of a week ago.

* Luciano Cohan, economist partner at SEIDO, said recently in radio statements that “the government has to show that it is willing to pay the political costs involved in reducing (public) spending.”

* The Buenos Aires S&P Merval stock index lost 0.48% to 50,835 units, after gaining 3.09% in the last two rounds. The shares of the giant Pampa Energía stood out for the drop of 1.18%.

* “Argentina is part of the group of countries affected by the prevailing global conditions since 2018. However, the incipient change in the global context is beginning to be reflected in some variables. Soy, the main export product, has already accumulated a rise of more than 35% (annual), reaching 430 dollars per ton, “said consulting firm Delphos Investment.

* Within exchange activity, the wholesale peso was devalued by a controlled 0.07, to its historical floor of 80.02 / 80.03 per dollar, with the liquidity regulation of the central bank (BCRA) struggling to add reserves through its interventionist policy.

* “Reducing the exchange rate gap (currently 103.7%) by losing scarce reserves or increasing country risk is not worth it. High mistrust requires strong fiscal and deregulation measures,” said the Latin American Economic Research Foundation (FIEL) .

* The quotations of the peso in the alternative markets all depreciated at different levels: the stock market ‘Contado con Liquitación’ (CCL) did so with 1.2% to 149.2, the so-called ‘MEP dollar’ of the Electronic Open Market ( MAE) fell 1% to 144.2 units and in the small marginal market it fell 0.6% to 163 per dollar.

(Report by Jorge Otaola ,; Additional report by Hernán Nessi ,; Edited by Maximilian Heath)