LOCAL MARKETS CLOSED MIXED ON TUESDAY, with sovereign dollar bonds slipping slightly. Financial dollars fell while the official rate held steady, with the BCRA still buying reserves (USD 34 M) even as gross reserves declined. Peso bonds had a positive session across all curves, while equities closed slightly higher, led by the energy sector.
DOLLAR DEBT HAD A NEGATIVE SESSION, falling 0.5% ahead of coupon and amortization payments on the Bonares and Globales. Bonares led the declines, down 0.8%, while Globales fell 0.2%. With this performance, country risk closed at 408 bps. Separately, Bopreales fell marginally.
PESO BONDS HAD ANOTHER POSITIVE SESSION, led by CER bonds and Duals, both up 0.7%. Lecaps followed, up 0.6%, though short-end yields rose to 1.85% EMR, while dollar-linked bonds tracked the exchange rate closely.
THE OFFICIAL EXCHANGE RATE WAS STABLE AHEAD OF THE HOLIDAY, closing at $1,490.90 and accumulating a 0.5% rise on the month. Financial dollars fell: the MEP down 0.2% and the CCL down 0.4%, closing at $1,528.8 and $1,572 respectively, with the FX spread compressing to 2.8%. Separately, the BCRA bought USD 34 M, accumulating purchases of USD 290 M this month and USD 11,464 M this year. Gross reserves fell USD 764 M, closing at USD 48,772 M.
THE MERVAL ROSE 1.1% IN DOLLAR TERMS, closing at USD 2,066, in a session with no clear trend. Energy (on the rise in crude prices) and utilities led the sector gains; construction and banks lagged. Among local stocks, YPF (+4.2%), TGN (+2.1%) and IRSA (+1.8%) led the gains; Holcim (-1.6%), BBVA (-1.0%) and Supervielle (-1.0%) closed lower. Among ADRs, AdecoAgro (+6.0%), Vista Energy (+5.2%) and YPF (+1.6%) led the gains; Globant (-5.5%), BBVA (-2.9%) and Supervielle (-2.3%) led the losses.
MANUFACTURING OUTPUT ROSE 0.4% SEASONALLY ADJUSTED IN MAY, partially reversing April’s 2.1% decline. In year-on-year terms, the drop deepened to 5.7% (versus -2.5% in April), with 14 of 16 divisions in negative territory. In the January-May accumulated period, industry is down 3.1%. On the construction side, the ISAC index rose 6.3% s.a. after the prior month’s 4.0% decline, reaching its highest seasonally adjusted level since December 2023, and grew 4.1% y/y (+2.5% accumulated). The sector remains two-speed: structural inputs and finishing work rising, while traditional masonry and road infrastructure decline.
