Oil at USD 105 Boosted Energy Stocks and Drove Merval Up 1.7%

The increase in international oil prices benefited Argentine energy sector stocks and allowed the Buenos Aires stock exchange to close the week higher. The S&P Merval index advanced 1.7% in pesos, reaching 3,098,898 points, while country risk fell to 485 basis points.

Brent, the international crude benchmark, rose 8.7% and returned to around USD 105 per barrel, its highest level since May. The move was associated with supply difficulties caused by the ongoing hostilities in the Strait of Hormuz.

YPF Led Sector Gains

YPF was among the main beneficiaries among Argentine companies. Its shares rose 6% during the week and the ADR surpassed USD 56 on Wall Street on Friday, near its all-time intraday high excluding dividends. The oil company also benefited from opportunities linked to the Large Investment Incentive Regime and a Negotiable Obligations issuance of USD 1.2 billion.

Broad Advances in the Energy Segment

The rest of the energy segment also posted gains. Vista Energy gained 3% and Pampa Energía climbed 2.1%. In contrast, sovereign bonds fell: Globals declined 0.5% and Bonares, 0.7% during the week.

The decline in public securities did not prevent country risk from improving, due to the increase in U.S. Treasury bond yields used as a benchmark. The ten-year Treasury rate rose 19 basis points to 4.975% annually, its highest level since February 2023.

Stable Foreign Exchange Market

In the foreign exchange market, the dollar remained stable amid high supply volume and the Central Bank absorbed USD 42 million. In contrast, major Wall Street indices in the United States closed with losses between 1% and 1.9%, amid greater expectations of a potential rate hike by the Federal Reserve.