Argentina's Merval benchmark stock index climbed 3% on Tuesday to finish at a record high of 5,696.2 points, following a strong hike in YPF and Edenor stocks. YPF shares soared 11%, while electricity distributor Edenor saw prices close 19% up at the end of trading.
Shares at the state-owned petroleum company jumped after the announcement of a compensation pre-agreement reached by Argentina, Spain and Mexico over YPF’s seizure of a majority stake from Repsol last year.
A 6.5% climb in fuel prices is also pushing the company’s stocks higher.
Meanwhile, upward trends in the Edenor electric supplier company continued as a partial removal of utility subsidies and corresponding price increase was rumored.
If the pre-agreement between the three countries which is to be considered on Wednesday by Repsol board is approved, and all litigations are dropped, YPF will have the way open to issue bonds and reach other agreements with oil companies for the exploitation of the vast shale gas and oil deposits in Vaca Muerta, among the largest in the world.