The S&P Merval index lost 30.3% measured in pesos and closed at 24,384.24 units. The Buenos Aires stock market suffered during March a 34% slide in dollars (measured by the CCL) and 30.3% calculated in pesos, becoming one of the most affected markets in the world due to the economic and health effects, still uncertain, as a result of the coronavirus outbreak. Bonds rose to 6.2% (AA37) on Monday, in a market attentive to signs of debt restructuring promoted by the government, a situation that reflected an improvement in country risk, which fell 2.5%, or 105 points, to 4,082 units.
Month: March 2020
70% of the shops closed because of the quarantine
20% maintain sales through e-commerce, with a drop in sales of between 50% and 85%. Only 10% continue with open doors with an average 55% drop in sales. The only case with a positive balance with a 30% increase in sales is that of the supermarkets.
The economy contracted 1.8% in January and accumulated 19 falls in the last 21 months
The economic activity during January fell 1.8% concerning the same month last year, the Monthly Economic Activity Estimate (MEA) during January was 0.1% below last December's record. The most significant interannual declines were in Agriculture and Livestock, with a decrease of 6.8%, Industry (-1.3%), Construction (-13.7%) and Banks and Financial Intermediation (-7.8%). The EMAE includes several of the components that comprise the Gross Domestic Product (GDP), which decreased by 2.2% in 2019.
Financial assessment for March
The tourist dollar, which carries the 30% surcharge for the Country Tax, rose 3.6% this month to 86.37 pesos. The retail dollar rate accompanied the Single and Free Market (MULC), where the currency also rose 3.6% to 64.47 pesos in March. The blue dollar closed stable at 83.5 pesos, with a rise of 6.4% in the month and the Cash with Liquidation (CCL) - which results from the purchase and sale of shares or bonds to escape foreign exchange - rose 43 cents to 86.92 pesos, so the gap with the official was at 34.8%. The BCRA's International Reserves fell this Monday by $150 million to $43.58 billion; the coffers lost $1.2 billion during the last 30 days.
The S&P Merval fell 34% in dollar terms during March
The S&P Merval index lost 30.3% measured in pesos and closed at 24,384.24 units. The Buenos Aires stock market suffered during March a 34% slide in dollars (measured by the CCL) and 30.3% calculated in pesos, becoming one of the most affected markets in the world due to the economic and health effects, still uncertain, as a result of the coronavirus outbreak. Bonds rose to 6.2% (AA37) on Monday, in a market attentive to signs of debt restructuring promoted by the government, a situation that reflected an improvement in country risk, which fell 2.5%, or 105 points, to 4,082 units.
Public and private banks offer loans to pay salaries at 24% per year
After the "incentive" measures launched last week by the BCRA, public and private banks are offering loans at 24% rates and current account overdrafts for SME salary payments. It estimates that some $1.864 billion (120 billion pesos) will go into these loans. The terms in the financial institutions vary between 90 days and 24 months.
Argentina foresees selling only 200,000 cars this year
Manufacturers and sellers of new cars are facing a reality that is too changeable. With the volume of operations already reduced to 460,000 units in 2019, the data for the first months of 2020 projected a drop to 360,000 vehicles. As the pandemic begins to set the economic pace and these estimates become outdated, the outlook drops to 200,000 cars this year. In March, half of the month with only 17,000 units sold and little will be concrete -on line- while mobility restrictions continue.
International oil prices continue to fall
Crude oil prices fell sharply on Monday, with the international benchmark Brent losing $1.99 to $22.94 a barrel, a 7.98% drop. West Texas Intermediate (WTI) crude oil in the United States dropped 96 cents to $20.55, 4.46%.
Government evaluates measures to alleviate the effects of the crisis on hydrocarbons
The national government will launch measures to alleviate the effects of the coronavirus in the hydrocarbon sector. It would not extend any more the increase of the Liquid Fuels Tax (ICL) and the Carbon Dioxide Tax (IDC), next Wednesday the taxes will raise about 3 pesos per litre. Hydrocarbon-producing provinces demand a $54 barrel from the government, distribution companies demand value of $30, and the government negotiates to reach a break-even point. There is an excess of 200,000 barrels of oil per day. Brent oil, the reference for Argentina, fell on Friday to $26 on average.
The tourist dollar climbed to a record of 86.37 pesos
The tourist dollar (which carries a 30% surcharge for the Country Tax) rose this Friday 40 cents to 86.37 pesos. The official retail price rose 31 cents to 66.44 pesos. In the wholesale market, the U.S. currency appreciated to 64.41 pesos. The blue dollar fell to 83.5 pesos. The Cash with Liquidation (CCL) - which is obtained from the purchase and sale of shares or bonds - closed at 86.49 pesos, so the gap with the wholesale dollar widened to 34.3%. BCRA's International Reserves fell this Friday $131 million to $43.735 million
