To write about how companies collapse and profits decrease is not nice, especially when nobody dares forecast what will happen the next minutes.
El contenido al que quiere acceder es exclusivo para suscriptores.
Argentine blue chips have lost 25% of their value so far this year. Last week was, undoubtedly, the worst week of all, with a fall of 11%.
The fact that we are going through unusual days is revealed by the present scepticism even in the light of rises such as those on Friday when Merval soared 5.59% to 329.08 points.
Hardly anything of what is going on depends on the results of the companies. It depends, on the contrary, on their characteristics of liquidity as long as they allow the inflow or outflow of money to the market. The clearest example is Pérez Companc. This company gained 13.5% in the last day and traded 17% of the total amount of trading volume (45.6 million pesos).
The government is paying 21% per annum to get money. Therefore, few people thought that the rise of stocks was something more than buying positions in view of a short weekend that would help to overcome the "beating" received in the previous days and to start thinking calmly and objectively.
By the end of trading on Friday, the board showed 10 bearish stocks, 25 bullish stocks and 10 unchanged stocks. These results stressed the uncertainty of the market about a process that, over and above political statements, will finish the moment Argentina starts asking for money at reasonable rates again and when the private sector is able to devote itself to its business and starts growing.
Even though it is true that stock exchange matters forecast economic ones, they sometimes fail. We can only say: take care and good luck in these rough waters.
