Argentine Stocks Rise, Bonds Fall as Central Bank Weighs New Monetary Plan Amid US Holiday Impact

On Thursday, Argentine assets had a relatively calm day, with no direct reference to international markets. Stocks rose slightly, while bonds fell and the blue dollar remained above $1,400. The New York Stock Exchange was closed due to the Independence Day holiday in the United States, so Argentine stocks did not have the external reference of ADR movements.

The Merval index saw a slight increase of 0.5%, which in dollars represents a daily gain of 0.3%. According to Marcos Natalucci from Rava, shares traded mostly positively but with some losses. YPF (YPFD) rose 0.1%, Grupo Financiero Galicia (GGAL) ended unchanged, Pampa Energía (PAMP) gained 1.7%, and Banco Macro (BMA) gained 0.3%. Thursday’s rise represented the third consecutive recovery after the recent shock experienced by the shares.

On the other hand, debt instruments moved in the opposite direction, closing with slight declines and leading to a marginal rise in the country risk to 1,523 points. Although the market expected the Central Bank to make official the implementation of the new Letter of Monetary Regulation on Thursday, the monetary authority did not express itself on this matter.

Economist Gustavo Ber mentioned that details of the new monetary plan for this stage are still awaited, particularly regarding additional efforts required from public accounts due to debt transfers from BCRA to Treasury. Reserves dynamics and current exchange strategy remain crucial for market stability.

With low volume due to US holiday impacting local business volume as it was one of lowest trading days this year, The Central Bank completed purchases for US$ 22 million in exchange market near end of first week of July with positive result of US$79 million