A roundup of Wednesday’s stock market results from across the region
🗽 On Wall Street:
U.S. stock markets closed with mixed results on Wednesday, as traders watched for a drop in Treasury bond yields and a plunge in Netflix (NFLX) shares, which suffered after Tuesday’s earnings report.
Also weighing on stock market performance was the growing chorus that U.S. inflation is peaking, according to Bloomberg.
The S&P 500 fell slightly, by 0.06%, while the Dow Jones Industrials gained 0.71%, but the Nasdaq Composite (CCMPDL) fell 1.22%, as did the Nasdaq 100, with technology stocks weighing heavily, which retreated 1.49%.
Both indices were hit by the performance of the streaming platform, which on Tuesday had reported a loss of 200,000 customers in the first quarter, the first time that has happened since 2011, and hinted at a pessimistic outlook after projecting that the figure will rise to two million users in the second quarter.
The stock plunged on the New York Stock Exchange and fell 35%, losing more than $50 billion in market capitalization and dragging down competitors such as Disney (DIS) and Roku (ROKU).
🔑 The Day’s Key Events:
The spring meetings of the World Bank and the International Monetary Fund (IMF) continue, warning about the level of indebtedness of economies.
Countries, including those in Latin America, are beginning to emerge from historic debt issuance but now face rising borrowing costs as the fiscal outlook moves amid heightened uncertainty, the IMF warned in its Fiscal Monitor.
The agency now estimates that public debt will fall and stabilize in the medium term at around 95% of GDP, a figure that will still be 11 percentage points higher than before the pandemic. A similar trend will occur in Latin America, whose debt will recede but not enough to see pre-Covid-19 levels.
The agency estimates that the region’s debt will stand at 71.7% of GDP this year and will vary slightly to 71.8% in 2024. Despite this stability, the reality diverges among the region’s main countries.
👑 The Leader:
Colombia’s COLCAP index saw the best performance in the region, after a rally in the last hours of trading. Shares in the financial and energy sectors accounted for the Colombian stock market’s rise.
Specifically, securities linked to Bancolombia (BCOLO) -both ordinary and preferred- and those of Canacol Energy (CNEC) and Ecopetrol (ECOPETL) stood out in Wednesday’s session.
During the day, Charles Gamba, CEO of Canacol Energy, assured that most oil and gas producers in Colombia have enough exploration licenses to continue drilling for the next four years, regardless of who wins the presidential elections next month.
Peru’s stock market rebounded after accumulating five consecutive down sessions, returned to gains and was the second best performer in Latin America.
The S&P BVL/Peru (SPBLPGPT) advanced thanks to the performance of the financial sector, consumer staples and industrials.
The shares that were among the highest gainers were Credicorp (BAP), Alicorp (ALICORC1) and Minas de Buenaventura (BVN).
📉 A Bad Day:
After days of gains, the Mexican stock market fell back and showed the worst performance among its Latin American peers. The S&P/BMV IPC (MEXBOL) fell by 1.47% on a day on which the only other stock market in the region to post losses was Brazil’s.
In the case of the Mexican index, the materials, communications services and consumer discretionary sectors had the worst performance.
The shares of Arca Continental (AC*) fell after Tuesday’s better performance following opportunity purchases, which led it to show its best performance in 11 years on the Mexican Stock Exchange.
Brazil’s Ibovespa (IBOV) also traded in the red on the eve of Thursday’s holiday and after disappointing results from Vale (VALE3).
The mining company released its first quarter report, with production of 63.9 million tons, 6% less than in the same period of 2021, while its sales volume fell even further.
🍝 For the Dinner Table Debate:
The salaries of Latin American presidents show a wide divergence, with net values that range from almost $4,000 per month to $11,000, according to the conversion to U.S. currency on April 19).
Although the presidents’ salaries are well above average wages, they do not reach millionaire levels, as is the case, for example, with elite athletes.
Bloomberg Línea has calculated how much the region’s presidents earn per month and highlighted some relevant data. For example, the highest salary is disputed between Luis Lacalle Pou of Uruguay and Alejandro Giammattei of Guatemala.
Meanwhile, the salaries of Pedro Castillo, in Peru, and Alberto Fernández, in Argentina, appear on the lowest rung.
On the other hand, the net salary of Jair Bolsonaro, in Brazil, is one of the lowest, although the amount he receives increases with his retirement income as a retired military officer.