• Sun. Apr 14th, 2024

Energy Sector Rebounds on Gas Rate Adjustments and Optimistic Outlook on Wall Street”.

BySamantha Nguyen

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

Despite a global sense of pessimism, the Buenos Aires stock market began the month with a slight decline. However, the adjustment in gas tariffs provided a boost to the sector, with Transportadora de Gas del Sur ADR rising nearly 14% in New York. The positive momentum extended to banking stocks listed on Wall Street, with BBVA ADR advancing 7.4%, and Macro and Supervielle adding 6% and 5% respectively. After a shaky start to the week in the red, New York’s main indices recovered.

According to economist Gustavo Ber, while expectations of lower rates are decreasing, Wall Street is seeking relief after recent cautious rounds. ADRs are reflecting this more optimistic 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 gas rate adjustments.

PPI reported that new rate tables for gas transportation and distribution companies were published this month, 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; country risk worsened by 0.8%, returning to 1451 points.

In order for the global rally to be sustained, PPI warned that the accumulation of reserves must be sustainable as well as normalization of exchange markets and maturities in the short term. This insight underscores the need for continued economic stability and growth in the sector.

Overall, despite global pessimism and holiday catch-up on local markets, Argentina’s energy sector is experiencing positive performance due to gas rate adjustments and an optimistic outlook on Wall Street from economists like Gustavo Ber. The key to sustaining global growth lies in continued economic stability through sustainable reserve accumulation and normalized exchange markets with maturities happening within short time frames.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

Leave a Reply