The local market traded cautiously, with dollar-denominated sovereign bonds closing flat despite Moody’s rating upgrade, which continued to push country risk to new lows. The peso yield curve traded sideways, while the official dollar rose slightly and held steady following July’s decline. Regarding macroeconomic data, INDEC released the May economic activity figures, which showed a decline.
Dollar-denominated bonds closed mixed and virtually unchanged on average, with the hard-dollar index falling 0.04%. Global bonds retreated 0.1% and Bonares advanced 0.1%, in a session where the GD29 led the gains while the long-term foreign-law tranche lagged behind. This performance contrasted with emerging-market debt, which ended lower. Country risk narrowed by 11 basis points to 410 basis points, bolstered by Moody’s rating upgrade, which raised the issuer rating from Caa1 to B3 with a positive outlook. BOPREAL bonds were the strongest performers of the day, rising 0.6%.
Peso-denominated debt traded without a clear trend and with marginal fluctuations across all segments. Fixed-rate bonds and the CER curve closed slightly lower, with Lecaps yielding 0.1%, while dollar-linked bonds rose slightly by 0.1% and dual-currency bonds ended unchanged.
The official exchange rate rose 0.2% and closed at $1,480.86, offsetting the overall 0.1% decline recorded so far in July. The MEP dollar rose 0.1% to $1,510.44, and the cable dollar climbed 0.3% to $1,575.71, with the exchange rate reaching 4.3%. The BCRA purchased USD 25 M during the session, bringing its total purchases to USD 1,546.5 M in July and USD 12,721.2 M so far this year. Meanwhile, gross reserves rose by USD 117 M and closed at USD 49,036 M.
The positive spillover effect from the rating upgrade extended to stocks, and the Merval index rose 3.0% in pesos and 2.6% in CCL dollars, closing at USD 2,145. Construction, Banks, and Utilities led the sectoral gains. Among individual stocks, Loma Negra (+5.5%), Telecom (+5.3%), and Banco Macro (+5.2%) posted the best performance, while Ternium (-1.8%), Aluar (-0.5%), and Banco de Valores (-0.3%) were the only ones in the red. Among stocks traded in New York, Loma Negra (+5.6%), Supervielle (+5.5%), and Banco Macro (+5.3%) led the gains; Globant (-4.5%), Bioceres (-3.7%), and MercadoLibre (-1.2%) closed in the red.
The positive spillover effect from the rating upgrade extended to stocks, and the Merval index rose 3.0% in pesos and 2.6% in CCL dollars, closing at USD 2,145. Construction, Banks, and Utilities led the sectoral gains. Among individual stocks, Loma Negra (+5.5%), Telecom (+5.3%), and Banco Macro (+5.2%) posted the best performance, while Ternium (-1.8%), Aluar (-0.5%), and Banco de Valores (-0.3%) were the only ones in the red. Among stocks traded in New York, Loma Negra (+5.6%), Supervielle (+5.5%), and Banco Macro (+5.3%) led the gains; Globant (-4.5%), Bioceres (-3.7%), and MercadoLibre (-1.2%) closed in the red.
