S&P Merval fell 3% due to the effect of Petrobras and the profit taking of Supervielle

Supervielle action fell by 11.2% after its sharp jump of almost 80% in the previous week based on rumors indicating the company’s alleged interest in acquiring Falabella’s client portfolio and Banco Itaú’s alleged intention to purchase a business unit of the local finance company.

At the same time, the Bull Market Brokers settlement and clearing agent ensured that the views point to “Brazil, where (its market) falls driven by the change of board of directors of Petrobras promoted by (chairman Jair ) Bolsonaro “.

Indeed, Petrobras share drops 21% to date, wiping 70,000 million reais ($ 12,690 million) from the company’s market value, as analysts reduced their recommendations after Joaquim Silva e Luna was appointed to replace Castello Branco as the firm’s manager .

The president of the neighboring country announced the reorganization of the oil company on Friday, saying the state-owned company’s fuel policy only appeals to markets and certain groups, so it should be changed as part of a effort to reduce gasoline and diesel prices.

XP analysts said investing in Petrobras was no longer tenable after Bolsonaro’s sudden decision to replace Roberto Castello Branco. “There are risks to the company’s independence and its ability to continue to price its fuel at international parity.”

In addition to this difficult context, investors’ doubts about the future of the Argentine economy in the context of the coronavirus pandemic, high inflation, the freeze of rates and negotiations with the IMF for an extended development plan.

During, domestic bonds posted declines in all their segments, for which the country risk increased by 9 units and approached 1,500 basis points.

“Bonds have suffered a lot in recent weeks – in fact months – and in this context, the deal on its own (with the IMF) would not serve for a sustained price restructuring. In other words, the agreement is a necessary condition, but not sufficient to help the recovery of Argentinian assets, ”said consultancy firm Portfolio Personal Inversiones.

He added that “there are many issues to be solved regarding the economic recovery, inflation and other issues. Everything, bearing in mind that we are in an election year, and the political factor has a weight more than relevant. Let us also take into account, that Argentinian investors at risk have been punished for a long time, with which regaining confidence will not be immediate “