• Fri. Apr 19th, 2024

News Eyeo

All Important News

Argentine energy stocks surge by 14% on Wall Street following tariff adjustment

Byeditor

Apr 3, 2024

Despite a new global pessimism, the Buenos Aires stock market started the month with a slight drop. However, the sector’s papers received a boost from the gas tariff adjustment, with The ADR of Transportadora de Gas del Sur rising almost 14% in New York. This bullish momentum was also observed in banking papers listed on Wall Street, with the ADR of BBVA advancing 7.4% and those of Macro and Supervielle adding 6% and 5% respectively. New York’s main indices recovered after a red start to the week.

Economist Gustavo Ber explained that while expectations of lower rates are being reduced, Wall Street is seeking respite after greater caution in recent rounds. ADRs are accompanying a better climate in the north, while locally they need to catch up after multiple holidays. In the local market, where reds dominate, the performance of energy papers stood out. Central Puerto and Edesur, although not directly related to gas, benefitted from the announced rate adjustments. Gas Natural Ban saw a 4.5% increase.

PPI stated that new rate tables for gas transportation and distribution companies have been published, with rates set to be updated monthly starting in May using an automatic formula. This increase, expected by companies, aims to rebuild profitability in a sector that has been heavily affected in recent years. On the bond side, after a rally in March, Argentine debt moved in a mixed direction this month. The country risk increased by 0.8%, returning to 1,451 points.

In order for the global rally to be maintained, PPI warned that the accumulation of reserves must be sustainable and signs of exchange market normalization and continued maturity normalization in the short term are necessary.

By editor

Leave a Reply