Argentina's country risk index closed at 524 basis points on Wednesday, May 20, after falling from an opening of 547 points. Sovereign bonds and Argentine ADRs rose on Wall Street.
The index compiled by JP Morgan fell due to a technical readjustment in dollar-denominated bonds. During the session the gauge reached a low of 522 points before settling.
Argentine ADRs mostly closed higher, led by BBVA Argentina which rose 6.9 percent and Grupo Supervielle which gained 6 percent. Energy shares such as Transportadora de Gas del Sur fell 5.2 percent.
Emilio Botto of Mills Capital noted that after the credit upgrade to B- the country risk found resistance to sustainably break below the 500 basis point area. The analyst added that further compression will depend on structural signals including continuity of the economic program.
