Monday, June 23, 2014

BA stock market higher after gov't decides to negotiate with vulture funds

The government’s decision to negotiate with holdout hedge funds has had a positive impact on the stock market. Buenos Aires stock market opened in an upward trend today, with a 5.7% rise to 7,786.17 units. Bonds and coupons went up by 18% and Merval index by over 5%.

After President Cristina Fernández de Kirchner stressed the government’s willingness to pay “100% of its creditors” last Friday, and awaiting Argentina’s formal presentation before US Judges Thomas today, investors reacted with optimism in the beggining of the week.

Public title Bonar 2017 went up by 4.5% while Discount in dollars rised by 12.6% and Bonden 2015 by 1.7%. Coupons, in turn, raised up to 18%.

Banks and energy company’s shares show the biggest improvements, with gains between 7% and 14.9%.