• Sat. Apr 13th, 2024

Buenos Aires Stock Market Rebounds from Sluggish Start due to Gas Tariff Adjustments

BySamantha Jones

Apr 4, 2024
Argentine Energy Stocks Surge by 14% on Wall Street Following Tariff Adjustment

Despite the global economic pessimism, the Buenos Aires stock market began the month with a slight drop. However, the 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.

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 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 continued economic stability and growth are necessary for long-term sustainability of reserves accumulation and exchange market normalization maturities in the short term must also be achieved before investors will fully commit to investing again. This underscores

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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