ON MONDAY'S SESSION, local markets closed with a positive tone for bonds and negative for equities. Financial exchange rates rose while the official rate declined. In this context, the BCRA again purchased reserves, although the average pace continues to fall. Among ARS-denominated bonds, dollar-linked instruments led gains, while Lecaps, CER and Duals closed with slight advances.
ARS-DENOMINATED DEBT TRADED RELATIVELY STABLE THROUGHOUT THE SESSION, with Duals declining 0.2%, in line with the marginal rise in the Tamar rate, which stood at 22.2% NAR, while overnight rates remain at around 20% NAR. Lecaps and CER instruments fell 0.3%. Dollar-linked instruments also declined in line with the drop in the official exchange rate.
DOLLAR-DENOMINATED BONDS STARTED THE WEEK ON THE RISE, ADVANCING 0.4%, in line with the performance of emerging market debt. Globals led with a gain of 0.4%, with GD46 posting the strongest advance (+1.2%), while Bonars rose 0.3%, with GD35 standing out (+0.6%). With this performance, country risk stood at 421 bps. Bopreal bonds also outperformed, advancing 0.6%.
THE OFFICIAL EXCHANGE RATE DECLINED 0.2%, SETTLING AT $1,457.31, accumulating a 3.3% gain month-to-date. Financial exchange rates, by contrast, rose: the MEP advanced 0.4% and the financial rate 0.3%, closing at $1,485 and $1,522.5, respectively, while the spread narrowed to 2.5%. The BCRA purchased another USD 50M, accumulating USD 1,156M in purchases for the month and USD 10,912M year-to-date. Gross reserves rose USD 139M to close at USD 47,507M.
THE MERVAL FELL 1.6% IN PESOS AND 2.2% IN DOLLAR TERMS, CLOSING AT USD 2,160, in a session of broad profit-taking. Financials and communications led the sectoral declines; construction was the only sector to close in positive territory. Among individual stocks, Supervielle (-8.5%), BYMA (-4.7%), Galicia (-4.3%), Holcim (-3.9%) and BBVA (-3.9%) led the losses, while Banco de Valores (+1.2%), TGS (+1.2%) and Loma Negra (+0.7%) were the exceptions. Among ADRs, the decline was almost unanimous: Supervielle (-9.3%), Galicia (-5.4%) and Edenor (-4.4%) led the losses; only Bioceres (+1.8%) and Ternium (+0.7%) closed in the green.
