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The senators’ letter or the wealth tax are factors that can quickly change the mood of the market

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“The dollar goes down as fast as it rises because this is a very small market and with very weak hands,” explained a trader to explain the collapse of the “blue” or free dollar. The issue began with an initial drop of $ 2. Holders of savings dollars, who postponed non-postponed payments such as expenses or rents, expecting a higher rise, as soon as they saw it recede, they rushed to liquidate their holdings to take profits. As it went down, the sellers increased and, in a minimal square, the dollar closed at the floor of $ 162, $ 10 less than on Friday, but there was no seller for today so a rebound is expected.

Those that went in the opposite direction were the alternative dollars. The Central Bank repeated its strategy and let these dollars remain 1.5% up throughout the entire round. But in the final half hour he intervened with almost USD 6 million in bonds that achieved little because the Stock Market dollar or MEP, with deals for USD 32.8, million increased by $ 1.57 (+ 1.1%) to $ 142.82 and cash with liquidation, which operated USD 76.5 million, rose 89 cents (+ 0.6%) to $ 147.44.

In the wholesale market, where the dollar advanced 22 cents to $ 79.97, a greater liquidation of exporters who must pay VAT this week was noted. After the sale to importers, the Central Bank was left with a surplus of USD 40 million that allowed it to increase its reserves after 8 wheels of withdrawal. Reserves are now at USD 39,115 million and grew by USD 14 million.

In this volatile context, the news of the placement of 10-year dollar bonds by Richmond Laboratories stood out, raising USD 7.6 million, 2.6 million more than what was requested in the tender, a sum that they will invest to finish a new plant with state-of-the-art technology. Laboratories today are attractive to investors, which is why they bet on the long term.

Debt bonds, in particular AL30, which is the one most used by the Central Bank to regulate alternative dollars, had a slight recovery of 0.90% that allowed the country risk to drop 12 units (-0.8%) to 1,321 basis points.

The Stock Market had its day of rise because it was infected with what was happening in the world before the announcement of the Modern Laboratory about the advances of its vaccine. On Wall Street, the Dow Jones rose 1.60% and the S&P 500, 1.16%. The Nasdaq, where the shares of new technology are traded, started lower, but managed to close with a modest advance of 0.12%. The behavior of this indicator has to do with the appearance of the vaccine, the sectors that suffered the most from the pandemic will improve. So, they take profits from the top earners and move on to stocks that are priced lagged.

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The S&P Merval, the index of the leading stocks in Buenos Aires, rose 2.38% and closed at the high of the day. The businesses did not give a good upward scenario, because they were scarce. Only $ 852 million were operated.

The Argentine ADRs – certificates of holdings of shares listed on the New York Stock Exchange – had an excellent wheel in favor of the fact that every time a news related to the vaccine appears, there are more investors willing to take risks in emerging countries. The highlight was the 22.93% rise in IRSA Commercial Properties. Take off escorted her with 11.79% and Tenaris with 7.08%.

Everything that happened yesterday is relative because the economy is hanging by a thread. The approval of the wealth tax and the support of President Alberto Fernández for the senators’ letter, which goes against everything that was discussed with the IMF, are factors that can change the mood of investors in an instant. Today everything that moves in the market is pure speculation. There are no signs of improvement.

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