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

Despite the global economic downturn, the Buenos Aires stock market began the month on a positive note, with only a slight drop. However, this was quickly reversed by the gas tariff adjustment, which boosted the energy sector’s stocks. Transportadora de Gas del Sur ADR saw an almost 14% increase in New York, while BBVA ADR advanced 7.4%, and Macro and Supervielle added 6% and 5% respectively.

Investors on Wall Street are seeking a respite from recent cautionary rounds as expectations of lower rates diminish. This optimism is reflected in ADRs in the US, while the local market is catching up after multiple holidays. Central Puerto, Edesur, and Gas Natural Ban all benefited from the gas rate adjustments in Argentina’s energy sector.

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 to help 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% but returning to 1,451 points.

For sustained growth and stability in the global economy, PPI warned that reserves must be accumulated sustainably and that normalization of the exchange market must occur with maturities in the short term. This highlights the need for continued economic growth and stability across all sectors of the economy.

Overall, despite global pessimism surrounding investments at present time, there are glimmers of hope for recovery within certain sectors such as energy stocks here in Argentina due to tariff adjustments and optimistic investors on Wall Street looking towards sustainable growth and stability across markets.

By Sophia Gonzalez

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