Sunday , November 17 2019
Home / argentina / State risk does not produce, while the Stock Exchange operates with selective profits

State risk does not produce, while the Stock Exchange operates with selective profits



that Bag de Comercio de Buenos Aires rises this Thursday because of portfolio recomposition, in reduced business space and select for closing annual positions.

The domestic market recorded a positive trend even though it had begun bass player from the stock market index New York and fell in a European box.

The Merval stock index of ByMA (Argentina Stock Exchange and Market) operates with rose 1.5% to 28,890 units, led by positive trends in securities in the financial segment.

This leading benchmark accumulates losses of 4% in pesos so far in 2018, compared to the annual inflation expected by private analysts to approach 50 percent. In dollars, its collapse is famous: 53%, one of the worst shows in international comparison.

With regard to government securities, the most punished are dollar-denominated Argentine laws and maturities after 2020. Bonar 2024 offers a 14.4% annual profit in dollars; Bonar 2025, 15.1%, while Discount 2033 generates 14.2% on the secondary market.

that country risk JP Morgan, which measures the difference in the level of US Treasury bonds with peers that appear, increased by 832 basis points for Argentina.

THE MARKET ASSUMES THE TAX ON FINANCIAL INCOME

According to the extensive size published in Official Bulletin, tax will reach fixed installments, bonds, stock and rentals, with some exceptions such as discount coupons for asset purchases.

that aliquots vary between 5 and 15 percent, according to the type of instrument and characteristics of the investor.

The operator explains that the size is bad for financial markets because it scares investors, given that taxes are taken from a base of returns that are higher than around 67,000 pesos (around USD 1,735) per year.

"Financial income tax is as bad as other taxes charged, (and) worse when you add the amount of tax paid in our country, not to mention in a language context of inflation and 50% devaluation", said the financial analyst Christian Buteler.

In early April, management of President Mauricio Macri has reported new adjustments to financial income, in local or foreign currencies, held by non-residents. At the end of April, a current exchange rates and "sell" financial assets Argentina whose damage still exists today.

"On this occasion, it is necessary to include the remaining adjustments to the regulations", after the explanatory decrees of April 6 and October 31 of this year, are clear official publications.

Operators and financial market investors believe that this is a new step away from the arrival of new capital, at times of abrupt reduction in liquidity in the public securities market in general. In addition, the Argentine economy faces a recessive process with Interest rates close to 60%, in accordance with the guarantee given by the Central Bank.

Provisions framed in search for more money to relieve a large fiscal deficit The government faces, after a recent financing agreement with Monetary Fund International (IMF).


Source link