Stocks, bonds and cryptocurrencies: financial winners and losers of the week

By James J. Moya On May 14, 2022

volatility and inflation are the two words that marked the week. Markets remained on the sidelines ahead of the release of price data in Argentina, the United States, Brazil and China. In all cases, the figures were high, which generates worry by the reaction that the central banks will have.

To this was added a real shock in the world of cryptocurrencies, which generated significant losses for those who had invested in it. Although Friday ended on a brighter note, the week was characterized by red widespread.

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Argentinian stocks, a safe haven

the bolsa Buenos Aires managed to detach itself from the bad moment of the world markets and scored a up 2.7% within a week (i.e. 0.5% measured at the official exchange rate). The weekly performances of Banco Macro (11%), Holcim (6.3%) and Grupo Financiero Galicia (5.7%) stood out.

The S&P Merval index posted a rise of 2.7% over the week. (Photo: Mariano Sanchez/NA).

At the opposite extreme, the the biggest losses of the week went to the newspapers of Aluar (-5%), Transportadora de gas del Norte (-4.3%) and Cresud (-3.5%).

Contrary to what happened in Argentina, in Wall Street the main stock indexes closed with weekly losses of more than 2%. Among the homegrown newspapers listed in the United States, the results are mixed.

An operator of the United States <a class= — An operator of the United States Stock Exchange, whose stock indices ended the week with falls of more than 2%. (Photo: Andrew Kelly/Reuters).For: **Reuters**

Of ADR companies that trade simultaneously in Buenos Aires and New York, highlighted the 8% increase recorded by Banco Macro. Central Puerto (4.1%) and YPF (3.2%) also posted gains. On the other hand, Loma Negra recorded the biggest loss, with a drop of 2.9%.

For their part, the companies of Argentine origin who operate only in Wall Street closed field day negative. This was the case of the Mercado Libre, which fell by 14.2%; Despegar, which lost 9.9%; and Globant, which fell 3.8%.

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April inflation data, official internals and uncertainty did not help Argentina’s debt. “During the week, the balance is very negative, losing the Global 3.5%”sharp SBS Group on dollar securities. Consequently, the countries at risk it rose 4.9%, or 88 points, to 1,894 points.

The company pointed out that bonds that track the official exchange rate also closed with half-point losses in the week.

Financial week: Falling bonds and cryptocurrencies drove Argentinian stocks higher

Once the April inflation data became known, the debt linked to this indicator decreased. “The good NCE they lost on average almost 1% for various reasons. Some investors thought it was a good time to To take advantage of given that they already looked expensive to trade at historically low real rate levels,” he said. Paula GandaraCIO of Adcap Asset Management.

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The expert added that there was also bailouts in the mutual fund industry, due to seasonal tax payment issues. In this context, he recommended “take advantage of losses to rebuild positions in the face of persistent inflationary pressures and unanchored expectations”.

Dollar: the Central Bank was barely able to buy 20 million dollars

From end to end of the week, the price of blue dollar advanced $2.50 and closed at $203.50although it reached $205.

Financial exchange rates, for their part, recorded significant increases on the last day of the week that led them to reverse the losses of the first rounds. So the MEP closed at $210.94 and gained 1.3% for the week. the counted with liquidationmeanwhile, ended at $212.61, 2.3% above the previous Friday.

In full harvest, the Central Bank bought US$20 million in the week and accumulated a positive balance of about US$500 million during the month. (Photo: Telam).

For its part, the official wholesale dollar rose $1.13 during the week to $117.43 and marked the second highest weekly correction of the year. the central bankwhich had started the week by buying 110 million US dollars, ended with a positive balance of barely 20 million dollars.

crypto crash

who invest in cryptocurrencies lived a real week of panicdue to the collapse of one of the most important projects among the stablecoinsthat is, virtual currencies that seek to follow certain assets of the real economy one by one.

The stable cryptocurrency Terra was intended to follow the course of the dollar one by one, but a crisis of confidence brought the project down in recent days and it lost almost all of its value. (Photo: Given Ruvic/Reuters).

“Stable Cryptocurrency UST (created to maintain a 1:1 parity with the dollar) and the asset used to absorb its volatility and maintain parity (Luna) They have lost almost all their value.after an outbreak of mistrust in the system’s ability to hold the price 1 to 1″, the economist explained Fernando Marulpartner of FM&A.

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The collapse of this Terra project dragged down the rest of even the most recognized cryptocurrencies. During the week, the bitcoin lost almost 18% and it traded below US$30,000.