The statements of the president-elect, Javier Milei, ratifying a cut in public spending to reach the fiscal balance next year, they were the main support for a new financial day with positive balance.
The impact of Milei’s sayings was especially observed in the bond marketwho enjoyed a second consecutive round with significant advances.
In different journalistic interviews, the elected president maintained his position of eliminate state expenses to honor debt commitments, including sacrificing public works until taking it to “zero”.
With the promise of the next president, investors were tempted to take positions in Argentine public securities, which in the days before the election reached historic lows.
Consequently, between Tuesday and Wednesday, most of these papers accumulated increases greater than 35%exceeding US$ 30, after having reached levels between US$ 23 and US$ 25. For example, the reference AL30D reached a price of US$ 31.31, adding an increase of almost 40% in the two days (the Friday the 17th, prior to the election, its value was US$22, on par with what is considered a “junk” bond or in “default” conditions.
This favorable climate remained in the stock market, although with less effusiveness than the day before. From the 17 points that the Merval advanced on Tuesday, it went to a more moderate jump of 5.8%.
The species that drove the index were Cresud, which shot up 16.9% and YPF, which improved 10.2%.
The case of the ADRs of Argentine companies listed on Wall Street was different, since in this case There was a profit taking that left the panel with more red ticks than green. In any case, in the balance of Milei’s first three rounds as president-elect, the balance remains in positive territory.
The dollar had different behaviors according to each segment.
In the informal square The note closed at $1,080, with an increase of $5 compared to the day before. The increase occurred in the second part of the day since in the Early transactions had fallen to $1,065.
Meanwhile, the businesses carried out on the Stock Exchange had another dynamic since The MEP had its “moment of fury” reaching a maximum value of $1,030. But then the intervention of the Central Bank appeared to give it a sharp cut that left it at $984, rising 6% on the day. In turn, Cash with Settlement advanced 7.7% to end at $947.
Maintaining the crawling peg mechanism, The monetary authority adjusted the wholesale exchange rate to $356.45, while the official price went to $374.33. Consequently, the Card dollar remained at $748.66. The gap of $332 between the card dollar and the blue dollar allows a difference of 44% in a purchase made with plastic money that is settled with the sale of tickets sold in the informal circuit.
Regarding its operation in the exchange market, the Central Bank bought US$ 8 million accumulating US$ 425 million in the month.
But this result once again had as its main reason a almost absolute closure of import payments. On the other hand, the liquidation of exports is almost non-existent despite the fact that the government allowed the “50/50” liquidation between the CCL and the MULC (Single and Free Exchange Market).
Analysts interpret that Despite this incentive, the conditions are not in place for exporters to earn foreign currency. When there are just 18 days left until the new government takes office, it will lead to different exchange conditions that include a higher exchange rate and a greater degree of freedom to dispose of dollars.
In the market of future dollar investors moderated their devaluation expectations and the December bill was traded at $782, which meant a drop of $20 compared to Tuesday’s close. Anyway, The implicit devaluation is 110%.
By January 2024 the positions were closed with a value of $915 per ticket.