Argentine Markets Mixed Amidst IMF Deal Expectations
Argentine markets exhibited mixed trading during Thursday's opening as investors anticipate a potential agreement with the International Monetary Fund (IMF).
An IMF delegation is present in the country to progress discussions for a new loan program, potentially releasing $11 billion to bolster the central bank's reserves (BCRA).
"Despite recent volatility in domestic assets, confidence and optimism prevail among investors," noted economist Gustavo Ber. "Positive external signals from the President's trip, including advances in IMF negotiations, contribute to this sentiment."
Following the U.S. president's inauguration, Argentine President Mauricio Macri is attending the World Economic Forum in Davos, where he delivered a speech.
The benchmark S&P Merval index initially declined by 1.1% due to profit-taking after a 2.34% gain the previous day.
Fixed income markets remained stable in the pre-market with the country risk index rising 11 units to 652 basis points.
"The market has experienced significant growth since August 2024, but it seems to be running out of momentum," said analyst Salvador Di Stefano. "A clear narrative for the next 60 days is absent, and an IMF deal and the removal of exchange rate restrictions may not materialize until April or May."
The interbank peso remained stable at 1.0475 units per dollar thanks to BCRA intervention. The central bank is set to adjust the current 2% monthly crawling peg to 1% in the coming days.
In the previous session, the BCRA auctioned $82 million to meet demand, marking its second consecutive day of negative intervention. The central bank has accumulated $1.432 billion in purchases so far in January.