• Tue. Apr 23rd, 2024

Energy Boosts Buenos Aires Stock Market, While PPI Warns of Challenges for Sustainability of Global Rally

BySamantha Nguyen

Apr 3, 2024
Argentine Energy Stocks Surge by 14% on Wall Street Following Tariff Adjustment

Despite global pessimism, the Buenos Aires stock market started the month with a slight drop. 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.

Economist Gustavo Ber explained that 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. In the local square, energy stocks saw notable performance, with Central Puerto, Edesur, and Gas Natural Ban all benefiting from the gas rate adjustments.

PPI reported that the 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 the accumulation of reserves must be sustainable, as well as the normalization of the exchange market and maturities in the short term. This insight underscores the need for continued economic stability and growth in

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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