Thursday, November 30, 2023

The market may go into a possible “overshooting”

After the stunning victory of Javier Milei, Lisandro Nasini, executive director of Nasini SA, thinks that the market may go into a possible “overshooting” next week, indicating a change in price without There are clear references.

“Free financial dollars, such as the stock market dollar or MEP and the CCL dollar, are expected to experience an increase of at least 10%. Hard dollars or dollar titles may also experience increase, because Milei expressed willingness to pay,” he analyzed.

On the contrary, “the debt of the peso may suffer, because Milei expressed his commitment to reduce public spending and the issuance of money.”

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“Stocks, on the other hand, may see an increase, because there is a consensus that Milei will adopt more pro-market principles than his predecessors. Specifically, energy company stocks are expected which will benefit, as Milei promised to release the tariffs,” Nasini analyzed.

Despite these prospects, Nasini warned that uncertainty will continue in the market until Milei provides more details on its economic plan.

“What this week means will depend on the government and Milei,” he said. “Milei must reassure the markets, share more details about his economic plan and his team, to reduce the volatility and uncertainty that the market expects.”

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Massa’s departure is likely to be considered by the market as “noise.” “Therefore, it is unreasonable to expect a week of high volatility in the Argentine markets. “Uncertainty will continue until Milei provides more details about its economic plan,” estimated Nasini.

Nation World News Desk
Nation World News Desk
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