BUENOS AIRES, Aug 24 (Reuters) – Argentina’s assets closed on the rise Tuesday on the back of a renewed global appetite for risk amid expectations of a speedy economic recovery, a day after the South American country received just over $ 4.3 billion. for the distribution of Special Drawing Rights (SDR) of the International Monetary Fund (IMF).
At the local level, the focus is on political issues ahead of the upcoming primary legislative elections in September and the general elections in November, and on the country’s negotiations with the IMF for the restructuring of some $ 45 billion.
“Amid growing expectations about progress in the negotiations with the IMF, local assets rehearse a strong bullish reaction as progress towards an agreement would be a positive signal for investors, while simultaneously closely monitoring surveys within the ‘ electoral mode, ‘”said Gustavo Ber, an economist at Estudio Ber.
“An understanding with the body, in combination with an internal political consensus that validates the guidelines, could open space to face post-elections a path of convergence in economic imbalances, as well as it could clear the maturities of the next few years in order to win air for a recovery, “he added.
The IMF sent Argentina 4,334 million dollars for the global distribution of SDRs on Monday, bringing the country’s gross reserves to 46,306 million, the highest volume in more than two years.
“On September 22 (these SDRs) will be used to make the first capital payment with the IMF ($ 1.88 billion). In the event that an agreement is not reached before the end of the year, they could also finance the payment of interest in November ($ 389 mln) and the second principal payment on December 22 ($ 1,880 mln), “said Delphos Investment.
Analysts discount that Argentina will delay any announcement of an agreement with the IMF until after the legislative elections on November 14.
* The S&P Merval stock index improved 3.33%, to a maximum provisional close of 71,353.80 points, after reaching an intraday historical peak of 71,451.06 units, from the previous record of 69,719.04 points recorded last year 11 of August.
* On the other hand, OTC sovereign bonds concluded with an average improvement of 1.4%, thus accumulating an increase of close to 3% in two sessions. The Argentine country risk, measured by the JP Morgan bank, fell 24 basis points to 1,548 units around 2000 GMT.
* “Another point to take into account is the call for bids that will be held on the last day of the week, which will make it possible to measure market confidence in the mid-term elections,” said Noelia Bisso, from Rava Bursatil. The Ministry of Economy will put out to tender Treasury instruments on Friday according to the date of the organism’s schedule.
* The wholesale peso depreciated a slight 0.05%, to 97.45 / 97.46 per dollar, in a framework regulated by the central bank (BCRA) to level the liquidity between the exporters’ foreign currency sales and the renewed importing demand.
* “Private market sources estimated that official purchases totaled today (Tuesday) about 10 million dollars,” said Gustavo Quintana, operator of PR Corredores de Cambio, adding that we had a “good volume traded at the wheel (.. .), the largest amount operated since July 2 “.
* After recent new exchange restrictions, the alternative market of the peso traded at 169.4 units on the ‘Contado con Liquvación’ stock market, at 169.5 on the so-called ‘MEP dollar’, while in the informal segment it remained stable at 182 per every dollar.
(Reporting by Walter Bianchi; Additional reporting by Hernán Nessi; Edited by Jorge Otaola)