STXNEWS LATAM-Argentine power stocks gain on aid hopes

Tue May 8, 2012 1:24pm EDT

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Shares in Argentine power companies Edenor and Transener rallied for a second consecutive day due to speculation about possible government measures to help the struggling electricity sector, traders said.

Edenor was up 26 percent in afternoon trade in Buenos Aires at 0.96 pesos per share after climbing 20 percent in the previous session. Transener - which rose 15 percent on Monday - was up 18 percent at 0.838 pesos per share.

Both companies are controlled by Argentina's Pampa Energia , which was up 6 percent in Buenos Aires.

Tariffs in Argentina's power sector have been largely frozen since 2002, but operating costs have risen due to brisk inflation - causing heavy losses for some operators including Edenor. Reuters Messaging:

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