Argentine Stock Market Surges 40% on Milei’s Promises to Reform Economy

Argentine Stock Market Surges 40% on Milei’s Promises to Reform Economy

Javier Milei’s election victory over Economy Minister Sergio Massa has sparked a 40% increase in the stock price of YPF, the state-owned oil company. Milei, who has big plans for the country’s economy, intends to revive Argentina by using the US dollar and possibly selling off state-owned companies such as YPF.

Milei’s administration aims to add value to companies and increase their saleability, 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.

The news of Milei’s election win prompted a surge in demand for Argentine stocks and dollar bonds. YPF saw a rise in stock price, while other Argentina-linked equities such as Grupo Financiero Galicia and Banco Macro also gained over 20% in value. The Global X MSCI Argentina ETF also saw gains soon after midday in New York.

Milei described his election win as the defeat of a decadent model and asserted 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.

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