- Shares of state oil company YPF rose 40% on Monday after the presidential victory of Xavier Miley.
- Miley has promised to revive Argentina’s economy, and has also said he would like to privatize YPF.
- Miley won Argentina’s presidential election on Sunday against Economy Minister Sergio Massa.
Argentina’s state energy company YPF saw its New York-listed shares surge more than 40% on Monday, following Javier Meili’s victory in Sunday’s presidential election.
Around 2:00 pm EST, the stock hovered at $14.90, up 38.82% on the day.
Right-wing liberal candidate Miley, who defeated Economy Minister Sergio Massa by a larger margin than expected, has promised to revive the ailing Argentinian economy largely through promoting local use of the US dollar, and said he would support YPF. Will consider selling. And other state-controlled firms will promote public accounts.
According to Reuters, the president-elect said in a radio interview that his administration would “create value” for the companies so they can be sold “in a very advantageous way for Argentina.” The country nationalized 51% of YPF more than a decade ago and wrested control from Spain’s Repsol, and the energy company now oversees massive shale gas and oil reserves.
The YPF was not alone in its rally on Monday. Other Argentina-linked equities also saw gains, as did Argentine dollar bonds.
Shares of Grupo Financiero Galicia and Banco Macro both climbed more than 20%, and the Global X MSCI Argentina ETF rose more than 11.6% shortly after noon in New York.
“The decline model is over, there’s no going back,” Miley said in a speech after the election.
Investors and markets will be monitoring the exchange rate between the peso and the dollar, as Miley’s bold economic plan includes deprecating the local currency in favor of the greenback to control historic inflation.