Month: August 2020

Financing in the capital market grew 75% in pesos

In the first seven months of this year, the Argentine capital market in the local currency, increased by 75% compared to 2019 in the same period. Although this percentage must reduce by the effect of inflation (the year-on-year variation of the Argentine Consumer Price Index in July was 42.4%), the balance is still highly favourable. According to the National Securities Commission (CNV), total financing in July generated a positive variation of 28% in year-on-year terms and 76% compared to the previous month.

EU blocks entry to Argentinean citrus, a $155mn market

The European Union decided to suspend imports of citrus fruits from Argentina because a disease called black spot found in the merchandise sent from Tucumán and Jujuy. Up to now, 129,000 tonnes of citrus exported, representing around 85% of the total forecast. Imports of citrus from Argentina into the EU in 2019 totalled 166,843 tonnes for 155 million Euros. This year, with the pandemic, orange consumption increased sharply, and because of this, international prices also rose. Considering that the products affected by the ban represent 99% of the imports of the European block, a protectionist measure expected. Perhaps this is the real reason for the decision taken.

AA2000 placed ON dollar-linked for $40 million at zero rate

Aeropuertos Argentina 2000 made its first issue in the local capital market, with the placement of $40 million in 24-month Negotiable Obligations (ON) under the dollar-linked modality. The funds from this placement will be used, among other things, to finance the business, given the scarce activity in the airport market in recent months due to the coronavirus pandemic.

Rates: Enargas reported $1.3 billion in overcharges

Enargas filed a criminal complaint against former officials Juan José Aranguren, Andrés Chambouleyron and the previous Enargas intervention of David Tezanos and Daniel Perrone for overcharging in the updating of gas tariffs. The procedure objected to was the arbitrary selection of a factor to update the tariff base, placing it far above what would have corresponded, deriving in exceptional and illegal income to the gas transportation and distribution companies for a minimum of $1.3 billion.

Construction cost index increased by 2.2%

Yesterday, the INDEC released the Construction Cost Index (CCI), which reflected a 2.2% increase in July, as a result of the 5% rise in the “Materials” item and the 1.9% increase in “General Expenses”, while the “labour” item registered no change. In the annual accumulated, the ICC had a rise of 39.8%, below the inflation of the same period, which was 42.4%. The evolution also lagged behind the increase of the official dollar, which climbed by 60% in the same period.

Wholesale prices climbed 3.5% in July

Wholesale prices increased by 3.5% in July, as a result of the 3.5% rise in “domestic products” and 3.8% in “imported” ones. Thus, the INDEC’s internal wholesale price index (IPIM) accumulated an increase of 44.5% in the last twelve months and 10.2% so far this year.

Telecom profits fell by 79.6%

Telecom Argentina closed the first semester of the year with a net profit of 1.96 billion pesos ($26.74 mn), which represents a fall of 79.6% against the benefit obtained in the same period in 2019, due to the price freeze that has been in force since May and expires at the end of August. The number of users remained stable.