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.
The local market, where reds dominate, saw strong performance in energy papers such as Central Puerto and Edesur. While not directly related to gas, these companies benefitted from the announced rate adjustments. Gas Natural Ban saw a 4.5% increase as well.
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 is expected by companies and 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.
In order for the global rally to be maintained, PPI warned that sustainable accumulation of reserves is necessary and signs of exchange market normalization and continued maturity normalization in the short term are crucial
