Reversing Reds: The Bullish Boost in Buenos Aires Stock Market”.

By Eleanor Harrison Apr3,2024
Argentine energy stocks surge by 14% on Wall Street following tariff adjustment

Despite a global pessimism, the Buenos Aires stock market began the month with a slight drop. However, this was quickly reversed as 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, thanks to these gains in energy and banking sectors. Economist Gustavo Ber explained that while expectations of lower rates are being reduced, Wall Street is seeking respite after greater caution in recent rounds. He noted that ADRs are accompanying a better climate in the north, while locally they need to catch up after multiple holidays. In the local market, where reds dominate, energy papers stood out. Central Puerto and Edesur benefitted from announced rate adjustments, while Gas Natural Ban saw a 4.5% increase.

PPI stated 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 due to various factors such as inflation concerns and political uncertainties surrounding upcoming elections.

In order for the global rally to be maintained, PPI warned that the accumulation of reserves must be sustainable and signs of exchange market normalization and continued maturity normalization in the short term are necessary. They also advised investors to remain cautious as geopolitical tensions continue to mount globally and could lead to volatility in financial markets around the world

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

Related Post

Leave a Reply