• Wed. Apr 17th, 2024

Boost for Wall Street’s Bullish Momentum: Buenos Aires Stock Market Rebounds After Gas Tariff Adjustments and Central Bank Rate Increase

BySamantha Jones

Apr 4, 2024
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 with a slight decline. However, the recent adjustment of gas tariffs provided a boost to the sector’s stocks, as Transportadora de Gas del Sur ADR rose 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.

According to economist Gustavo Ber, while expectations of lower rates are decreasing, Wall Street is seeking relief after recent cautionary rounds. ADRs in the US are reflecting this more positive sentiment, while the local market is catching up after multiple holidays. In terms of energy stocks, Central Puerto, Edesur, and Gas Natural Ban all saw notable performance due to the gas rate adjustments.

The 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 as they aim 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, as well as sustainable accumulation of reserves and normalization of the exchange market in the short term. This insight underscores

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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