Strategy
Domestic stocks continued their correction path. This seems to be the response to the message issued by the main political figures, having overcome the suffocation of the increase in the gap between the official exchange rate and the free market ones, and given the current stability, the message arrived of course: tariff rates will not have significant adjustments in the short term.
The doubts are then transferred to the fiscal situation: will we see a higher monetary issue? What will be the interest rate policy? Uncertainty to which is added the negotiation with the IMF. The result will be of the utmost significance, which is complicated by the conflicting interests between the technical wing and the political wing, all within a year of midterm elections.
We continue to favor defensive papers whose income is in hard currency, such as Aluar (ALUA) San Miguel (SAMI) or Ternium Argentina (TXAR), as well as CEDEARS with a reduced exposure to the Argentine market, such as MercadoLibre (MELI) and Globant (GLNT) . Bolsas y Mercados Argentinos (BYMA) is attractive at these prices, thanks to its portfolio of investments in foreign instruments, added to the strong growth in the volume traded. In addition, Loma Negra (LOMA) could be attractive in the medium term considering the Government's idea of launching a new Procrear plan, which could help the construction sector rebound, although the agreement on prices for construction products would limit capacity. of the company to capitalize on the increase in demand.
Highlights
- Domestic stocks continued their correction path. This seems to be the response to the message issued by the main political figures, having overcome the suffocation of the increase in the gap between the official exchange rate and the free market ones, and given the current stability, the message arrived of course: tariff rates will not have significant adjustments in the short term
- The Pesos denominated Merval Index dropped 5,41966% during the last 7 days, in contrast to international markets.
- Companies in the Industrial sector were the best weekly performers.
- Agribusiness was the worst performing sector.