Despite the local holiday, Argentine assets begin the month with the right foot in international markets. The papers of Argentine companies that are quoted on Wall Street They bounce up to 5% after closing February with strong reds; while the Drive in dollars rises to 2.4%. Although the climate of the exterior bags helps, The main catalyst was Javier Milei’s announcement of the last weekend that an agreement with the fund is close to being completed.
At the opening of the ordinary sessions of the National Congress, the President said “In the next few days” he will ask Congress to support a new agreement with the Monetary Fund. At the same time, this Sunday expanded the idea in television statements: “We are negotiating a new loan that implies a certain amount of fresh funds ..The funds we will apply to cancel Treasury debt with the Central Bank and nothing more“, said.
The market took note: from before the formal opening of Wall Street, both the Argentine and bonds rose, a trend that was confirmed with the initial bell. The global titles of foreign law rise mainly in the longest part of the curve: The global 41 glued a 3% jump after having closed February with a 2.8%drop.
For Fernando Marull, of phmi -aids, the market response should be positive: “From this Monday you should see some type of rebound, if the world accompanies. Milei’s sayings suggest that in the coming weeks the new agreement would come out, and that is something that is waiting for the market.” Marull added that the improvement could be seen above all in the price of Argentine shares: “If the view made the market is that the agreement is in the short term, the shares can rise for opportunity purchases,” he said.
Along these lines, Martín Polo, from Cohen, explained: “The market should take it as positive, given the circumstances that Argentina has. Argentina needs to agree with the fund because many dollars are already going for payments to international organizations, the reserves are still negative beyond those of the good harvest of dollars made by the Central Bank.”
The solidity of the central reserves, and the definitions about a new exchange scheme are the two issues that concern investors when it comes to Argentina. In February, the Central got US $ 1,437 million for its interventions in the change market, but far from improving, gross reserves closed at its lowest level in the last five months.