Day: May 21, 2020

Economic activity plummeted 11.5% year-on-year in March

The Monthly Economic Activity Estimator (MEA) collapsed 11.5% year-on-year in March, affected by the recession and the beginning of the quarantine. The National Institute of Statistics and Census (INDEC) reported Wednesday that the seasonally adjusted variation for the third month of 2020 compared to February showed a drop of 9.8%.

S&P Merval rose 1.1%, and the country risk rose 1.6%

The S&P Merval index of the Bolsas y Mercados de Bolsas y Mercados Argentinos (BYMA) rose 1.1% to 30,809 units, up 21.6% for the month. The principal increases were Grupo Supervielle (8.2%), Comercial Del Plata (7.7%) and Telecom (3.2%). In the fixed income segment, the leading dollar bonds closed with decreases as country risk – measured by JP Morgan – rose 1.6% to 2,794 units. Bonar 2024 fell 1.6%, and Bonar 2020 fell 1%, while the Discount under Argentine law rose 0.4%.

YPF went out for $25 mn and got $100 mn

YPF raised $100 million on the local capital market yesterday. The company had set a target of $25 million and reflected the confidence in YPF among local investors. It achieved this result by issuing a new 18-month dollar link series of $93 million at a 0% rate and the remaining $7 million in a Class III reopening in pesos due in December of this year.

UNICEF estimates that 700,000 children will fall into poverty

UNICEF estimates that by the end of this year, 700,000 children would fall below the poverty line, as a result of the drop in activity in Argentina. Currently, monetary poverty among children reaches 53%, according to INDEC for the second half of last year. Based on GDP-poverty elasticity projections, UNICEF Argentina’s technical team believes that by the end of the year this percentage will reach 58.6%, which implies that there will be 7.7 million poor children in the national territory.