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

Energy Stocks Rebound in Buenos Aires Despite Global Pessimism and Concerns About Debt Sustainability

Despite global pessimism, the Buenos Aires stock market started the month with a slight drop. However, energy stocks benefited from a gas tariff adjustment, boosting the sector’s performance. Transportadora de Gas del Sur ADR rose almost 14% in New York, while banking stocks listed on Wall Street advanced by 7.4%, with 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 in the US reflect this more positive sentiment, while the local market is playing catch up after multiple holidays.

In Argentina, energy stocks saw notable performance as Central Puerto, Edesur, and Gas Natural Ban all benefited from the 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 and 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. For sustained global growth and stability, PPI warned that continued economic stability and growth must be achieved through sustainable accumulation of reserves and normalization of the exchange market maturities in the short term.

Overall, despite global pessimism and concerns about debt sustainability, some sectors such as energy are showing positive performance thanks to government policies aimed at rebuilding profitability.

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