Argentine companies falling on Wall Street and dollar liquid rising

The shares of Argentine companies listed on Wall Street operated friday with losses of up to 11.3% on a day in which the New York Stock Exchange ended with a negative trend. While the closing of the Counted Liquidation dollar (CCL) in April, was 31.9%. Thus, the Dow Jones Industrials lost 2.55%, the selective S&P 500 also fell 2.81%, while the technological Nasdaq lost 3.20%.

Wall Street operated in red throughout the session in a wheel tainted by the setbacks of major technology companies such as Apple or Amazon and by fear that the United States and China will escalate the trade war again.

In this regard, the White House economic adviser Larry Kudlow assured that the Chinese will respond for what happened with the covid-19 according to a cable from the EFE agency. With no activity in the Argentine market due to the Labor Day holiday, the roles of Argentine companies operating on Wall Street marked strong setbacks led by Irsa (-11.3%); Pampa Energía (-9.1%); Central Puerto (-8.6%); Corporación América (-8.6%) and Grupo Financiero Galicia (-6.9%). In the public debt market, sovereign bonds in dollars registered a negative trend throughout the session . In this way, country risk increased 1.90% to 3,565 basis points.

Dollar week

This Friday, there were no operations for the holiday, so Thursday's dollar figures for sale to the public closed at $ 69.16 average with a rise of 10 cents compared to Wednesday while in April it had an advance of $ 2 , 58 which represented an increase of 3.87%. Meanwhile, the dollar with liquidation (CCL) sold for $ 114.65 (+ 3.6%), which represented an increase of 31.9% in April while the MEP dollar traded at $ 111.59 (+ 2.5%) and in April it accumulated a 30.7% advance. In the wholesale sector, the US currency gained nine cents and ended at $ 66.84, and on the monthly balance rose $ 2.37 (+ 3.68%). Finally, the dollar with the surcharge of 30% country tax culminated at $ 89.90. Consulted by the balance of the month Daniela Wechselblatt, CEO of DW Global Investments, said that in April we got to see the MEP dollar at almost $ 120 and the official one at $ 64-69, implying an 80% gap . The specialist said, this led the regulatory body to impose limits on the composition of mutual funds in order to decompress the demand for the MEP dollar and with liquidation managing to put a brake on this rise. Wechselblatt concluded, what we do understand is that while we are in this hard process of renegotiating debt with foreign funds, we will not have access to international credit and this will put more pressure on the dollar. The best news we could receive is that we are close to an agreement. In turn Gustavo Quintana, analyst at PR Corredores de Cambio indicated that the monetary entity was once again active in the cash segment and in the futures market with sales that attempted to supply the demand for foreign exchange.