As expected, the financial markets reacted with euphoria to the victory of the liberal candidate Javier Mileiwho last night said in his first speech as president-elect that “the situation in Argentina is critical,” that the changes that the country needs “are drastic” and that “there is no room for gradualism”.
Argentine shares listed on the New York Stock Exchange they soar above 32%, while Argentine bonds also rise 6%.
As today is a national holiday There will be no operations in the local market, nor will there be any quotation of official dollars, blue, MEP and cash with settlement (CCL).; Only the performance of the crypto dollar can be followed. Therefore, what happens in the United States market is one of the main indicators to measure the thermometer in the world of finance at this time.
Shares of energy companies present a true “party” on Wall Street. YPF, The state-controlled company leads the increases with an increase of 32.71%, although it recorded peaks of 42%. Last Friday, the share price had closed at US$10.73, while it currently stands at US$14.24. It has not yet surpassed the peak of the last four years, when on July 17, prior to the PASO, it closed at US$15.46.
Early in the morning, Milei said on radio Miter that before privatizing 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, while these structures are rationalized, they are put to create value and that way they can be sold in a very beneficial way for Argentines.”
Pampa Energythe company founded by Marcelo Mindlinpresents a rise in its shares of 23.9%, while the price of Central Portanother electricity supplier company, soars 24.4% and Southern Gas Transport Company (TGS) rises 23.2%.
The shares of Vista, the Miguel Galucciowith an increase of 15.46%, while Tenaris, of the Techint group, rises just 1.18%. Edenor, for its part, the electrical distribution company belonging to the businessmen Daniel Vila, Jose Luis Manzano and Mauricio Filibertigrows 18.4%.
In the financial sector, bank stocks are also trading higher. This is the case of Macro Bankof the family Brito, with an increase of 22.4%; of the Galicia Financial Groupwith an increase of 25.3%; BBVA Argentinawith 21.3%, and Supervielle Group18.01%.
The actions of Black Hillthe country’s main cement company, rose 14.4%, while those of Cresud, linked to agricultural activity, soared 22.3%. The company IRSAowner of the main shopping malls in Argentina, has a positive variation in its shares of almost 18.2%, while Telecom rises 18.4%.
The company founded by Eduardo EunerkianCorporacion America Airports, in charge of the operation of most of the country’s airports, also benefits from the victory of the liberal candidate, with a rise in its shares of 14.8%.
Free market, the largest Argentine company in the country and one of the most valued in Latin America, is the only one that suffered a slight drop in its price at the beginning of the morning, but then fell in line with the rest of the national companies and now up 1.8%. His founder, Marcos Galperinyesterday tweeted “Free,” accompanied by an image of broken chains and flying pigeons.
The shares of other Argentine technology companies, such as Take offrise 4.9%, while Globant presents an increase of 2.8%.
Argentine bonds listed abroad also reacted positively, after Milei won the election campaigning to reduce state spending. If her economic plan comes to fruition, she will give more oxygen to the elected government to meet its debt commitments. The GD46 bond, maturing in 23 years, leads the rise with 6.38%, while it is followed by GD35 (6.11%), GD29 (5.72%), GD41 (5.70%), GD38 (4.44%), GD30 (4.16% ).
The country risk, index prepared by JP Morgan and measures the difference that American Treasury bonds pay compared to the rest of the countries, operates at 2340 basis points. It is a decline of 72 units compared to Friday’s close (-3.07%).
“Stocks and bonds are going to rise because the market is going to celebrate a pro-market candidate over Kirchnerism, so there is going to be enthusiasm in the market in that sense. That will be the first reaction, optimism. However, The market will be cautious about taking positions because all investors agree that the scenario is very difficult for Argentina“, beyond waiting for the economic team that has been appointed and the nature of Javier Milei’s speeches regarding possible governance agreements,” said Javier Timerman, managing partner of Adcap Grupo Financiero.
The New York Stock Exchange opens at 9:30 a.m. local time (11:30 a.m. in Argentina) and operates until 4 p.m., but the premarket, where retail investors can now buy and sell shares, has been operational since 4 in the morning. As the day goes by, operations are carried out in greater volume and with more liquidity.
This Monday is a holiday for National Sovereignty Day and there is no market for the official and blue dollars. The reference values are those of last Friday’s close, when the official dollar was quoted at $369.50 for sale, while the blue was at $950..
However, the crypto dollar – in constant activity, at every hour of the day – allows for a reading of trends. At this time, on the platform Binance it’s purchasable USDT (Tether, a currency that has one-to-one parity with the dollar) at $987 average.
Since yesterday, this market has been experiencing strong volatility. On Sunday before the close of elections, the price was trading at $944. However, as the first exit polls began to spread, it reached peaks of $1,150 on all cryptocurrency platforms. In the early morning hours, and after the moderate speech given by Javier Milei, it ended up falling back to current prices.
“Milei refrained from mentioning a dollarization plan in his speech, and his openness to the PRO to collaboratively form the next economic team could bode well for the real exchange rate in the medium term. However, the current ambiguity surrounding the transition period that will end on December 10 appears to increase uncertainty. However, if Milei manages to forge a solid government alliance with the PRO, the long-term prospects, in real terms, could be overvalued,” they considered from Portfolio Personal de Inversiones (PPI).