Buenos Aires Stock Market Rebounds Despite Global Pessimism: How Gas and Energy Stocks Led the Way

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

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.

The local market, where reds dominate, saw a strong performance from energy papers such as Central Puerto and Edesur, although not directly related to gas. Gas Natural Ban also experienced a 4.5% increase due to announced rate adjustments. PPI reported 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 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. To maintain the global rally, PPI warned that sustainable accumulation of reserves is necessary along with signs of exchange market normalization and continued maturity normalization in the short term.

In summary, despite some uncertainty due to global pessimism and multiple holidays locally, the Buenos Aires stock market saw positive growth due to the gas tariff adjustment and favorable conditions for certain sectors such as energy and banking papers listed on Wall Street. However, continued attention is needed on factors such as debt accumulation and exchange market stability for long-term sustainability of this growth trend.

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