The electoral scenario is somewhat clear as the electorate would be divided into two: center left and center right, which would be almost binary, continuing to generate uncertainty until the primary elections take place. Investors are now assigning a greater probability of an electoral scenario more favorable to the Government.
Companies with low debt in dollars and hard currency denominated revenues would benefit most in this context, acting as a natural hedge. In addition, companies with high dividend yields would also experience lower volatility. At current prices, Central Puerto (CEPU) continues to stand out, as most of its revenue is dollarized and has low dollar indebtedness. In addition, at current price levels, TGS (TGSU2) due to the positive sector’s growth outlook and a positive cash position is also attractive.
Highlights
- The Merval index fell 1.2% during the last 7 days, contrary to the developed markets’ trend.
- Oil & Gas companies were the best weekly performer.
- Financial companies were the worst performers.
- Merval Argentina Index Control Board.
Reporte
Equity Weekly Report
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