The Wall Street financial markets reacted with an encouraging 42% increase in the share price of Argentine companies listed on the US stock exchange after confirming the electoral victory of Javier Miley.
The state oil company YPF led the growth with an increase that, at times on Monday, reached 42%. Along with it, companies such as Edenor and entities such as Banco Supervielle showed significant gains of up to 24.9%.
This upward trend was also manifested in Argentine sovereign bonds, which registered increases of up to 8%, especially highlighting the valuation of the Global 2046 bond.
Infobae pointed out that the fall of Argentine country riskmeasured by the JP Morgan index, was 173 points, reaching its lowest level for two months.
The market enthusiasm reflects positive expectations for the future economic policies of President-elect Milei, whose proposals for market opening and structural reforms appear to promote investor confidence.
“I want to be very clear about something, the model of decline has come to an end. There is no turning back,” said Milei after learning of her victory at the polls this Sunday.
The initial reaction has been favorable and the markets began the week with a momentum that suggests a vote of confidence towards the change in economic direction in the South American country.
Gustavo Ber, market analyst, expresses that the expectation generated by the first signs of Milei’s management is behind the positive response of ADRs (physical title that supports the deposit in a US bank of company shares) and bonds.
The investment community now awaits details on the cabinet and a comprehensive economic stabilization plan that addresses the accumulated imbalances facing Argentina. Milei assures that he will deal a hard blow to the bureaucracy in his country and reduce numerous ministries.
With more than 56% of the votes, the liberal prevailed over Sergio Massa, reflecting a clear mandate in favor of a change in the country’s economic direction.
