The declines on Wall Street dragged down international markets
The Argentine financial market closed in negative territory this Monday, due to a moderate disarmament of portfolios, in a context of modest operations due to economic doubts for the short and medium term, after the ruling party was defeated in the primary elections, facing to the legislative elections of November.
In turn, the external context also played in an unfavorable way given the sharp fall in prices of technology stocks led by Facebook, the crisis of the Chinese real estate giant Evergrande, the doubts about the next steps of the Federal Reserve in terms of its policy stimulus and employment data.
On Wall Street, Facebook shares plummeted as much as 6% and ended 4.9% down to $ 326.23 and led the 2.1% losses on the Nasdaq tech average. The strong downtrend also hit other representative giants of the sector, such as Apple (-2.5%), Microsoft (-2.1%), Twitter (-5.8%) and Alphabet (-2%).
Facebook and its Instagram and WhatsApp platforms suffered a massive outage on Monday that potentially affected tens of millions of users.
The leading stock index S&P Merval of the Buenos Aires Stock Exchange turned negative and was slightly down 0.06%, at 77,578 units, after scoring a nominal historical level of 83,923 points after the defeat of the ruling party in mid-September , and to gain 4.7% during the past week, after a streak of five consecutive increases.
Among the ADRs and Argentine shares that are traded in dollars on Wall Street, the drops of 4.9% for Mercado Libre and 3.2% for Despegar stood out. On the winning side, he highlighted the rise of 5.2% for IRSA securities, and 4.7% for Cresud.
With a minimal drop, the Merval panel of the Buenos Aires Stock Exchange interrupted a series of five consecutive rises
“There are several factors that are negative for the local square, because beyond the complex political situation of the Government in the face of the elections, the external parameters do not help either and all this is reflected in the assets,” he explained to Reuters a private banking analyst.
The defeat of the Government in the September primaries plunged the Cabinet of President Alberto Fernández into a political crisis that led to changes of ministers and higher fiscal expenditures.
Global swap bonds -in dollars under foreign law- lost 0.5% on average, while JP Morgan’s country risk gained five units for Argentina, at 1,616 basis points.
Sovereign bonds traded in the Electronic Open Market (MAE) lost 0.1% in their average in pesos, led by the trend of dollarized issues.
Lowering of the “blue” and new sales of the BCRA
The free dollar ended up trading down one peso this Monday, to $ 185 for sale in the reduced parallel market. In 2021 it amounts to 19 pesos or 11.4 percent.
In the wholesale market, where the Central Bank intervenes with liquidity regulation operations, the bill rose seven cents to $ 98.86, with an exchange gap of 87.1% with respect to the “blue” dollar.
Although initially the private calculations estimated a with slight official purchases, “a review of today’s official result, according to private market sources, indicates that the monetary authority ended the day with sales of approximately USD 50 million,” said Gustavo Quintana, agent of PR Corredores de Cambio.
The amount traded in the spot segment reached 450.7 million dollars. After two operational rounds in October, the BCRA accumulated net sales of around 105 million dollars.
The current exchange restrictions encourage alternative dollars to be agreed outside the controlled market and carried out in a bilateral negotiation called Senebi (Bilateral Negotiation Segment), where transactions are not marked on electronic screens.
The most traded security was once again the GD30, with total deals for USD 5.4 million, and an implicit exchange rate of $ 189.27 for immediate cash operations, and of $ 189.94 at a 48-hour term.
Meanwhile, another free price, that of the implicit parity in shares that are traded simultaneously on the local Stock Exchange (in pesos) and on Wall Street (in dollars) averaged 193.05 pesos.
Argentina becomes more expensive: the multilateral real exchange rate fell to the level of 2018 Facebook shares sank up to 6%: Marc Zuckerberg lost USD 7,000 million in two hours Less dollars for the country: soybeans hit minimum prices in 9 and a half months, Due to a lower Chinese demand Markets: the Buenos Aires Stock Exchange ended its winning streak due to the firm downward pressure of the global markets Dollar today: the free price dropped to $ 185, in a day with sales of the BCRA in the market for USD 50 million