April 21, 2024 11:41 pm
Argentine Energy Stocks Surge by 14% on Wall Street Following Tariff Adjustment

Despite the global pessimism that persists, the Buenos Aires stock market began the month on a slight decline. However, this was quickly reversed with the adjustment of gas tariffs, which boosted the sector’s stocks. In particular, Transportadora de Gas del Sur ADR saw an almost 14% rise in New York. The positive momentum extended to banking stocks listed on Wall Street, with BBVA ADR advancing 7.4%, and Macro and Supervielle adding 6% and 5% respectively. New York’s main indices recovered after a shaky start to the week in the red.

According to economist Gustavo Ber, while expectations of lower rates are decreasing, Wall Street is seeking a respite after recent cautionary rounds. This is reflected in the performance of ADRs in the US, while the local market is catching up after multiple holidays. Energy stocks in particular saw notable performance in the local square, with Central Puerto, Edesur, and Gas Natural Ban all benefiting from gas rate adjustments.

PPI reported that new rate tables for gas transportation and distribution companies were published, allowing for monthly updates starting in May based on an automatic formula. This increase in rates, expected by companies, aims to rebuild profitability in a sector that has been heavily impacted in recent years. On the bond side, Argentine debt is moving in a mixed direction this month, with the country risk worsening by 0.8% and returning to 1,451 points.

In order for the global rally to be sustained, PPI warned that continued economic stability and growth are necessary, as well as sustainable accumulation of reserves and normalization of exchange markets in the short term. This underscores the need for continued focus on these factors if we want to maintain a positive outlook for both global markets and individual sectors like energy and finance

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