Argentine Market Stays Resilient Amidst Holiday and Central Bank Uncertainty

On Thursday, the Argentine market experienced a calm day without any reference to international markets. Despite this, stocks recovered and bonds fell slightly while the blue dollar remained above $1,400. The New York Stock Exchange was closed due to Independence Day holiday in the United States so Argentine stocks did not have external reference of ADR movements.

Shares traded mostly positively but with some losses on Thursday. YPF (YPFD) rose 0.1%, Grupo Financiero Galicia (GGAL) ended unchanged, Pampa Energía (PAMP) gained 1.7%, and Banco Macro (BMA) gained 0.3%. This represents the third consecutive recovery after the recent shock experienced by the shares.

Debt instruments moved in the opposite direction, closing with slight declines, 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 in this regard.

Economist Gustavo Ber mentioned that details of the new monetary plan for this stage are still awaited, particularly the additional effort required from public accounts due to debt transfer from BCRA to Treasury. He also highlighted reserves dynamics and current exchange strategy as crucial factors for market stability.

The Central Bank completed purchases for US$22 million in exchange market on Thursday nearing end of first week of July with positive result of US$79 million despite holiday in US impacted local business volume making it lowest for trading day this year