LOCAL MARKETS TRADED SELECTIVELY IN THE FIRST SESSION OF SEPTEMBER, with hard-dollar debt mixed as foreign-law bonds gained ground while local-law issues lost some, as country risk held near the 500 bp area and EM debt closed lower. Peso-curve performance was mixed in USD terms, with rate-adjustable and longer-dated exposure lagging while shorter tenors and dollar-linked notes gained, amid stable short-term rates. On the FX front, the official rate rose slightly while the financial dollars pulled back and the Central Bank returned to buying foreign currency. Equities were the firmest asset of the day, advancing in both peso and dollar terms, with NY-listed shares outperforming.
DOLLAR BONDS OPENED THE MONTH HIGHER, with sovereign debt gaining 0.3% on average, though performance diverged by law: Globales rose 0.5% while Bonares fell 0.2%. Within New York law, strength was concentrated in the long end, which climbed as much as 0.8%, while under local law the mid and long segments lagged. The move ran counter to EM debt, which closed lower. Country risk ended at 501 bp.
PESO CURVES TURNED MOSTLY POSITIVE IN USD TERMS, in contrast with peso-denominated returns. CER-linked TAMAR duals underperformed, down 0.5%, followed by fixed-rate bonds, which were flat, and CER bonds, up 0.3%, while dollar-linked notes gained 0.6%. Within the fixed-rate curve, the long end trailed, down 0.5%, against a short end up roughly 0.5%, leaving the curve steeper. Short-term rates held steady around 20% NAR.
THE OFFICIAL EXCHANGE RATE ROSE 0.2%, closing at $1,512.73, the same level as the month-to-date figure given it was the first session of September. The financial dollars moved the other way: the MEP fell 0.5% to $1,533.83 and the CCL retreated 0.5% to $1,589.80, with the spread at 3.6%. Separately, the Central Bank bought USD 15 M on the day and has accumulated USD 14,121 M so far this year. Meanwhile, gross reserves rose USD 1,948 M to close at USD 50,205 M, reversing the seasonal drop from reserve requirements on the last day of August.
THE MERVAL ADVANCED 0.3% IN USD TERMS, equivalent to 0.5% in pesos, closing at USD 1,913. Industrials led the gains, followed by utilities and energy, while communication, non-essential consumer and materials lagged. The local session showed strong dispersion, with Central Puerto leading gains at 2.8%, followed by Pampa Energía and IRSA at 2.2% each, against declines in Transener and Transportadora de Gas del Norte, both down 4.4%, and Banco de Valores down 2.7%. NY-listed shares outperformed, up 1.3% on average, led by Bioceres (+7.0%), AdecoAgro (+5.6%) and Vista Energy (+4.5%), against declines in Globant (-2.5%), Corporación América (-1.6%) and Telecom Argentina (-1.4%).
