Investments in Argentina: which were the Cedear winners in February?

After a very positive January for international markets, the situation reversed, in a negative way, during the second month of the year, and there were many more red lights than green lights on the panels.

However, some Argentine Certificates of Deposit (Cedear) managed to finish triumphant in February.

It should be noted that these papers have foreign stocks as underlying, which are not traded in Argentina, and adjust their price by the evolution of the original stock and by the cash with liquidity.

As the dollar moved very little during the period, the main variation was given by the underlying.

WHICH WERE THE BEST CEDEAR IN FEBRUARY?

There were only four companies which Cedear rose more than 10% during February. They are:

• NVIDIA: The semiconductor maker’s Cedear rose the most among those with significant volume: up 19.32% in pesos.
• Tesla: The electric vehicle maker’s Cedear rose 19.1% in pesos during February.
• Meta: The bronze medal went to the Cedear of Facebook’s parent company. Meta advanced 17.6% in the period.
• Vista: In fourth place was the Argentinean-Mexican company Vista. The oil company has been having formidable months for some time, to the point that in the last year it rose 124% in dollars. As regards Cedear, in February its price grew 13% in pesos.

WHAT HAPPENED IN THE MARKET IN FEBRUARY?

Maximiliano Donzelli, head of research at IOL invertironline, pointed out that February was characterized by two factors that had a negative impact:

“On the one hand, doubts continued in the market as to whether the U.S. economy will have a slight deceleration in terms of economic growth (known as “soft landing”) or will enter recession in the coming months of the current year.”

“In addition, January’s inflation figure of 0.5% per month, which was above market expectations, represented a pause in the inflation deceleration process.

According to Donzelli, in this context, “the market began to discount new interest rate hikes for the coming months and doubts arise as to whether the rate increase of 25 basis points will be maintained or accelerated with a hike of 50 basis points”.

Finally, the executive summarized:

“This had a negative impact on the monthly performance of the main US indices. In the case of the technology index, the Nasdaq 100 was less affected, registering a slight decline of 0.5%. In the case of the other two relevant selective indexes of the New York Stock Exchange, the S&P 500 and the Dow Jones Industrials, they also closed February down by 2.6% and 4.2%, respectively”.

With information from Bloomberg