On Monday, shares of state-owned oil company YPF jumped by an astonishing 40% after Javier Milei won the presidential election and defeated Economy Minister Sergio Massa. The stock reached a price of $14.90, up from its previous value, just before 2:00 p.m. EST. This news caused a surge in Argentine stocks and dollar bonds, indicating that investors are optimistic about the future under Milei’s leadership.
Milei has big economic plans for the country, including privatizing YPF. He wants to revive the Argentine economy by using the US dollar and possibly selling off state-run companies such as YPF. In a radio interview, he stated that his administration’s goal is to increase the value of companies and make them more saleable, which will benefit the people of Argentina. The government had nationalized 51% of YPF over ten years ago, taking control from Spain’s Repsol. They now manage substantial shale gas and oil reserves.
If Milei’s plans take off, there could be major economic changes in Argentina. Not only did YPF see a rise in stock price, but other Argentina-linked equities also gained over 20% in value on Monday. The Global X MSCI Argentina ETF saw gains as well, going over 11.6% soon after midday in New York.
Milei described his election win as the defeat of a decadent model, asserting that there is no turning back. To manage Argentina’s historic inflation, a plan is set to deprioritize the peso over the dollar. The anticipation of this new economic era is expected to impact the exchange rate between the peso and the dollar.
Overall, investors are excited about Milei’s victory and believe that his economic plans have the potential to bring positive changes to Argentina’s economy.