Saturday , July 31 2021

The S&P Merval cut a five-point streak in a row and fell 1.6%; country risk remained low

In the leading panel, the roles of Central Port and YPF led the losses, with falls of 4.3% and 3.5%, respectively.

On Wall Street, meanwhile, shares of Argentine companies closed a majority of declines, although two papers showed strong gains: Bioceres jumped 11.3% and Enlairar climbed 9.3%.

In a move worthy of the GameStop saga – although for other reasons, the actions of the Argentine Agrotech Bioceres stick a jump of up to almost 75% to surpass this Tuesday the $ S17 on Wall Street, a situation that triggered the momentary suspension of its listing, after knowing its acquisition by 6% Moolec Science, a molecular farming company, which it allows it to enter the fast-growing alternative food market.

After the resumption of operations, the Biox paper began to slow the sharp rise, ending with a positive variation above 11% on the NYSE. On Monday the assets of the company Agrotech they had already climbed 22.9%, so already they accumulate in the year an increase close to 80%.

The company on which Bioceres set its sights and unleashed the sharp rise in its shares develops products based on multiple crops in order to obtain functionalized alternative protein concentrates and isolates. Through genetic engineering, the company aims to produce animal-free solutions at a much lower cost than existing technologies, using the scalability of plant-based production systems to leverage the functionality achieved through cellular agriculture, the Agrofy site indicated.

On the other hand, in the US the S&P 500 closed lower (-0.2%) as investors awaited the outcome of a two-day Federal Reserve monetary policy meeting. In addition, the Dow Jones Industrial Average fell 0.4%, and the Nasdaq Composite fell 0.1%.

The US stock market lacked direction for much of the day, after the S&P 500 and the Dow Jones Industrial Average closed the previous session at record highs, as a $ 1.9 trillion fiscal stimulus package and vaccination campaigns reinforced the view that the economy is recovering.

At the same time fears of an overheating of the economy and the recent rise in interest rates increased scrutiny over the two-day Fed meeting, In which policymakers are likely to raise economic forecasts and will repeat their promise to remain flexible in the immediate future.

Apple stock rose after Evercore ISI raised its target price to the highest among analysts covering the company, according to Refinitiv data.

the Wall Street Fear Index (VIX) hit a five-week low of 19.68 points. Although one rises in the mid-afternoon of the 10-year Treasury rate to 1.62% fthey are enthusiastic about high-growth stocks.

In the fixed income segment, sovereign bonds deepened their partial recovery, given their attractive returns, after reaching minimum levels last week in the face of strong local risk aversion.

The progress was led by Global 2029, with an increase of 2.7%, while the benchmark Bonar 2030 rose by 1.3%.

Faced with this, the Argentine country risk bank JP.Morgan fell 1.4% to 1,551 basis points, after hitting an all-time high of 1,669 units last week since the index was restructured in September 2020.

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