This holiday, the local market is experiencing a decline in global markets, with Argentine papers experiencing a drop in bonds and shares. Pampa Energía recorded the most significant declines, with a drop of 3.5%, while Supervielle bank, Transportadora Gas del Sur, and Irsa all saw declines above 3%. The only positive data in this trading session are Tenaris (1.7%) and Corporación América (0.4%). So far in June, all ADRs are in the red, with Cresud showing the worst result with a decline of 17%.
Amid these falls, Argentine assets are distancing themselves from North American assets, with the Dow Jones rising 0.3%. Economists noted that the main ADRs are currently registering average decreases of 1.5%, with banking and energy papers being particularly affected by corrections in prices. Bonds are also weaker, losing an average of 0.2% in their dollar prices among the main references with NY legislation.
During the local holiday, ADRs and bonds in dollars appear more cautious after the positive reaction to the approval of the Bases Law and fiscal package. Some relevant chapters are still to be discussed in Deputies but it is considered a political and economic victory to consolidate fiscal balance. Experts believe that positive scenarios could lead to strong upside potential if investors remain optimistic about an orderly extension of the economy amid continued uncertainty over US trade policies and political tensions around the world.
