Negative investor response: stocks and bonds fell by up to 13%; and country risk jumped nearly 10%

The government said on Wednesday that I would seek to extend the terms of the obligations ease the pressure on the dollar and reserves, in a crisis of confidence in the face of rising political tensions before the October elections.

"The market does not believe the government, judging by the parities in which the bonds were operated, always down, with huge volatility.The feeling that resulted was that you try to launch the box, you win just the time, and the same problem comes back in the short term, "said Fin.Guru's director Gustavo Neffa.

To make matters worse, the re-inflation of much of the debt needs to be addressed by the opposition's electoral strength that has hardened its fighting stance towards the IMF, our biggest individual creditor, added Neffa.

With this complex investment climate decoupled from the rest of the markets (Wall Street climbed to 1.5%), the S & PMerval index fell 5.8% to 23,984.83 units, its lowest level since September 2017 (measured in pesos).

"Having punched the critical area of ​​25,000 points, now allows if the levels are close to 22,000 points"they warn on the spot.

Without recording any downloads, the most relevant falls of the day were the roles of Transportadora Gas del Norte (-13%); the Supervielle group (-10.4%); BBVA (-9.4%); and Mirgor (-9.2%).

The balance sheet of the companies showed 26 increases and 58 losses, with eight shares unchanged. The volume of shares traded reached $ 887.8 million.

On Wall Street, with a few exceptions, ADR fell to 7.2% (Supervielle).

Unlike equity holdings, the peso closed at 0.3% after a first crash and finished at $ 57.90 in the wholesale segment.

The Minister of Finance, Hernán LacunzaHe pointed out that the plan was only intended to extend the deadlines and did not involve any loss for investors. But the initiative is surrounded by questions, given the experience of other winding renegotiations of Argentine debt in recent years.

In that sense, mutual fund investors' savings were "trapped" following the government's announcement. Later, the National Securities Commission – together with the CFI Chamber – specified that individual savers ("human beings") who invested in mutual funds whose public securities were hit by the "reperfilamiento" debt ( Letes, Lecaps, Lecer, Lelink) They will not be affected by deferred payments. The "bailouts" of these funds will be possible once the NVC has published the new regulation.

"These are the best times to improve the composition of the portfolios if a particular company is interested in the stock market, otherwise, wait, because during the last month, the shares have lost enough for good news to recover immediately" , did he declare. l & # 39; badyst Hector Tavares

Argentina's badets collapse after the crushing defeat of the ruling party in the primary elections against Peronist Alberto Fernández on August 11th.

Since the beginning of 2018, the year when it reached its highest level in dollars until Thursday, The stock market accumulates a fall of 78.3% in dubious currency, According to data from the economist Mariano Kestelboim, slippage suffered between March 2000 and December 2001 (-68.7%).

"Despite the problems, logical in a controversial transition like ours, the value of Argentine badets measured in dollars is devalued and, over time, there is not much to lose, otherwise," added Tavares.

Bonds, with phenomenal volatility

In the fixed income segment, the main dollarized bonds have once again been severely punishedalthough with high volatility in shorter titles.

The steepest falls were observed on 100-year bond (-11.8%); Bonar 2024 (-11.5%); and the 2020 Bonar (-10.8%).

The dollar versions of these bonds resulted in losses of -4.5%; -8.5%; and -8.6%, respectively.

The change in the price of these securities was so abrupt that they allowed some investors to obtain a significant intra-day profit: "Anyone who bought the AO20D at $ 40 at the beginning of the wheel and sold it at $ 55 at noon took 37% of juicy dollars," An operator commented. In the end, this bonus ended at $ 42.50.

In Europe, Argentine bond prices have fallen to new lows. "Since they do not have the money, adjustments are needed," said Abhishek Kumar, Emerging Markets Portfolio Manager at State Street Global Advisors.

On the other hand, peso bonds continued their downward trend: 13% on average in the short section and 10% on average in the long section.

Finally, the Leliqs rate jumped to 78.207%, up 322 basis points, while for Treasury bills, there was no reference price.