Argentina: Bonds rebound by nearly 3% and country risk moves away from 1,600 points.

The market seemed to have digested the new government measures focusing on reserves, showing improvement despite ongoing uncertainties about the coming months.

As the week, marked by losses in Argentine assets abroad, came to a close, the Buenos Aires stock exchange rebounded along with dollar-denominated bonds and Argentine stocks on Wall Street. In this context, country risk reversed its earlier increase and moved away from 1,600 basis points.

In the fixed-income segment, dollar-denominated bonds rebounded by nearly 3%, led by the Global 2038 (+2.8%), followed by the Global 2035 (+2%) and the Bonar 2038 (+1.6%). Consequently, the country risk index measured by JPMorgan fell to 1,562 basis points.

On Thursday, declines in hard currency bonds were led by the Bonar 2030 (-1.3%), the Bonar 2038 (-1.2%), and the Global 2046 (-1%).

In the local market, the S&P Merval index rebounded by only 0.2% to 1,542,021.75 points, after dropping 6% over the last two sessions and closed the week in negative territory.

The top gainers included Sociedad Comercial del Plata (+3%), Banco Macro (+1.9%), Banco de Valores (+1.8%), and Transener (+1.6%), while the biggest decliners were Transportadora de Gas del Norte (-2.2%), Mirgor (-1.1%), and Transportadora de Gas del Sur (-1.1%). However, two stocks remained unchanged.

Meanwhile, ADRs (American Depositary Receipts) rose by up to 2.1%, with Banco Macro leading the rebound, followed by Grupo Financiero Galicia with a 1.8% increase and BBVA with a 1.7% gain.