The forcefulness of the result in the ballot surprised the operators and that was reflected in a shocking rise in Argentine papers, with 40% of YPF at the helm.
Milei’s statements weighed there in the sense of respect the contracts and advance a possible reprivatization of the oil company. Other companies in the energy sector rose up to 25%. The crypto dollar was around $1,000 and there are expectations for the opening of the market after the holiday.
The jump to $1,200 of the free dollar in the crypto market and then its strong decline to the area of $1,000 It was the first sign of reaction from the financial sector before the resounding victory of Javier Milei in this Sunday’s runoff.
The elected President referred to public companies.
The second signal came from Wall Street, where shares of Argentine companies are listed. In the first minutes of operations they skyrocketed with a historic rise.
In the case of the oil company with a state majority YPF shares of this company rose 34% at 12:10, that is, barely 20 minutes after the formal round of operations began. And then he took another leap to close with an increase of 38%.
Last Friday, the share price had closed at US$ 10.73, while it currently reached US$ 15. It has not yet surpassed the peak of the last five years, when on July 17, prior to the PASO, It closed at US$15.46.
It was Milei’s statements that pushed YPF’s action. In the morning she said on radio Miter that before privatize 51% of the oil company’s shares, “It must be recomposed” and he anticipated that YPF and Enarsa will have “a role in the energy transition.”
Other highly traded papers on Wall Street, such as Banco Galicia and Banco Macro, posted increases close to 25%, as did energy companies Pampa and TGS. The oil company VISTA climbed nearly 18% in the first minutes of operations.
There were even companies that foreign analysts know belong to businessmen who are friends of Sergio Massa and that, however, still rebounded in the prospect of a rate increase.
It was the case of Edenorthe electrical distribution company belonging to businessmen Daniel Vila, José Luis Manzano and Mauricio Filibertigrew 25%.
The company founded by Eduardo Eunerkian, Corporación América Airports, in charge of the operation of most of the country’s airports, also benefited from the victory of the liberal candidate, with its shares rising 10.5%.
The curious fact of the day was what happened with Mercado Libre, the largest company in the country and one of the most valued in Latin America.
It was the only one that suffered a slight drop in its price, despite the clear support of its CEO and founder Marcos Galperin for Milei. On Sunday she tweeted “Free,” along with an image of broken chains and flying pigeons.
A rally, as you can see, very Argentine, sustained, at least for now, on the promise of a 180-degree turn in economic policy starting December 10.
He bond market was also shown in a positive tone, with increases for debt papers between 2 and 3%.
On Friday, the ADRs (Argentine stocks listed in the US) had ended with increases of between 3 and 4%, but bonds closed with falls of 2% on average. The country risk closed at 2,412 basis points.
When explaining the reasons, the analysts referred to Milei’s promise about privatizing YPF and his speech when he stated that “Argentina had to fulfill the commitments made.”
That definition was also interpreted to mean that contracts will be respected.
That, in the financial market, was taken as a sign that the future Government does not have any plans to negotiate a new restructuring of the debt bonds.
The post first appeared on www.clarin.com