Argentine Energy Stocks Surge by 14% on Wall Street Following Tariff Adjustment

Buenos Aires Stock Market Boosted by Gas Tariff Adjustments, While New York’s Bullish Momentum Extends to Banking Stocks

Despite global pessimism, the Buenos Aires stock market began the month with a slight decline. However, a gas tariff adjustment boosted the sector’s stocks, with Transportadora de Gas del Sur ADR rising almost 14% in New York. The bullish 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 diminishing, Wall Street is seeking a respite after recent cautionary rounds. ADRs are reflecting this more positive sentiment in the US while the local market is playing catch up after multiple holidays.

Energy stocks 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 was expected by companies as they aim 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 the accumulation of reserves must be sustainable as well as normalization of exchange market maturities in short term which underscores need for continued economic stability and growth in sector

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