- Shares of state oil company YPF surged 40% on Monday following Javier Milea’s presidential victory.
- Milei promised to reorganize the Argentine economy and also said he would seek to privatize YPF.
- Milei won Sunday’s presidential election in Argentina, defeating Economy Minister Sergio Massa.
Shares of Argentine state energy company YPF surged more than 40% on Monday following Javier Milea’s victory in the presidential election.
At around 2:00 PM EST, the stock was trading around $14.90, up 38.82% on the day.
Right-wing Libertarian candidate Milei, who defeated Economy Minister Sergio Massa by a larger-than-expected margin, promised to revitalize Argentina’s ailing economy, mainly by promoting local use of the U.S. dollar, and said he would consider selling YPF and other state-controlled companies to boost public accounts.
The president-elect said in a radio interview per Reuters, his administration “creates value” for businesses so that they “are marketed in a way that is very beneficial to Argentines.” The country nationalized 51% of YPF more than a decade ago, taking control from Spain’s Repsol, and the energy company now oversees huge reserves of shale gas and oil.
YPF was not alone at its Monday rally. Other Argentina-linked stocks also posted gains, as did Argentine dollar bonds.
Shares of Grupo Financiero Galicia and Banco Macro rose more than 20%, and the Global X MSCI Argentina ETF rose more than 11.6% just after noon in New York.
“The model of decadence is over, there is no going back,” Milei said in her post-election speech.
Investors and markets will monitor the peso’s exchange rate against the dollar as Milei’s bold economic plan includes deprioritizing the local currency in favor of the dollar to tamp down historic inflation.