Javier Milei, the presidential candidate of the Liberty Advances coalition, has arrived in Buenos Aires to vote in the upcoming presidential runoff election. During his campaign, Milei pledged to reform the Argentine economy and expressed a desire to privatize YPF. On Monday after his win, YPF’s New York-listed shares surged more than 40%, reaching a high of $14.90, up 38.82% on that day.
Milei’s victory over Economy Minister Sergio Massa was a surprise to many, with the right-wing libertarian candidate winning by a wider margin than expected. In an interview with Radio 10, Milei stated that his administration will “create value” for companies sold beneficially for Argentines. He also promised to revitalize the struggling Argentine economy by promoting domestic use of the US dollar and considering potential sales of state-controlled companies like YPF to improve public accounts.
Other Argentina-related equities such as Grupo Financiero Galicia, Banco Macro, and the Global X MSCI Argentina ETF also experienced gains following Milei’s win. The president-elect used his post-election speech to express his commitment to ending what he called “the model of decadence,” suggesting that change is coming soon. Investors and markets are closely watching the exchange rate between the peso and dollar as Milei’s economic plan involves prioritizing the US currency over the local peso to help mitigate historic inflation.
Milei’s victory has sparked excitement among investors who are eagerly awaiting changes in the country’s economic policies. However, it remains uncertain how successful he will be in implementing these changes given opposition from various stakeholders and concerns about inflationary pressures.
In summary, Javier Milei’s election as President of Argentina has caused significant fluctuations in shares of state-owned oil firm YPF and other related equities such as Grupo Financiero Galicia, Banco Macro, and Global X MSCI Argentina ETF. As an investor or trader interested in this sector it is important to closely monitor developments in this region as they unfold amidst uncertainty about future economic policies and market trends.