Argentine stocks plummeted in New York, continuing their downward trend since the elections – Market Research Telecast

November 23, 2021
The Shares of Argentine companies listed on Wall Street tumbled to nearly 7% this Monday, in line with the downward trend that began after the elections. Due to the bridge holiday of the Day of Sovereignty, the local market did not operate. The country risk climbed to 1776 points.
ADRs (American Depositary Receipt) -a physical security that supports the deposit in a US bank of shares of companies whose companies were incorporated outside that country-, maintained the decline that started last week, when they fell as much as 20% in dollars.
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Although market operators do not attribute the collapse to the election result itself, they understand that the Government reaction by not acknowledging defeat and celebrating in the Plaza de Mayo generates more political uncertainty in the country and that translates into stock market operations.
Country risk reached a new maximum since the debt swap closed at the end of August 2020.
The biggest drop this Monday was the one of the papers of the unicorn Globant, the software engineering and information technology giant originally from Argentina but based in Luxembourg, which reached the -6,8%. But it was not the only technology and software that lost value, too Free market it fell -5,8%.
Other companies whose shares failed to hold were Black Hill, which fell -5,5%; the French Bank, that did it -4,8%; the bank Macro, a -4%; the Financial Group Galicia, a -3,9%, and To take off, -3,6%.
Conversely, Edenor managed not only to avoid the almost general decline but increase 2.4%, like Ternium, who did a 1,3% e Irsa Commercial Properties, a 1,1%.
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The market reaction after the elections he made him wait. A very warm Monday passed in a matter of variations, and the stocks, bonds and the dollar they began the deterioration on Tuesday of last week. The Actions closed with drops of up to 10%, the risk country about 1750 points and financial dollars soared.
There is at least three reasons why this scenario occurred. The first, the disappointment of the markets by the electoral result and a tone that they see “more radicalized.” The second, the global scenario that complicated emerging markets. And finally, and with respect to the dollar, a change of strategy by the Central Bank.
Market operators attribute the behavior of stocks on Wall Street to the uncertainty that generated the behavior of the Government after the defeat of the elections.
Also, the president’s announcement Alberto Fernandez Regarding the sending of a draft multi-year plan that includes the terms of the agreement with the International Monetary Fund (IMF) without disclosing further details, it also causes an uncertain scenario, especially due to the loss of legislators by the ruling party and the majority in the Senate.
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Added to all this are the interventions that the Central Bank has been carrying out to try to stop the drain on reserves and maintain control of the dollar. Among them, the new regulations on Cash With Liquidation (CCL), which further agreed on its operation.

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