With the help of YPF, Argentine ADRs rise up to 42% on Wall Street after the result of the runoff election

The market’s view after Javier Milei’s triumph

“The large victory in the LLA ballotage was positively received by investors during the local holiday, as reflected by ADRs and dollar bonds abroad by registering strong increases from bets taking advantage of their punished valuations, and expectations that a path can be taken to a economic normalization”Gustavo Ber began analyzing the market reaction.

“It happens that the initial speech is opening favorable readings regarding the decision to move towards the correction of the serious imbalances accumulated, without gradualism from the current delicate context. Hence, it is expected to know especially the economic team who will be in charge of designing and implementing a comprehensive stabilization plan that seeks to improve the short-term scenario, seeking to reverse the mistrust and vicious circle of recent times. In order to be able to go through an orderly transition during these almost three weeks towards 10-D – with the collaboration of the ruling party beyond the sudden decision of the Minister of Economy – would be beneficial in seeking to avoid incurring greater delays in relative prices in the face of accelerated inflation,” he concluded.

“The president-elect must dissipate the different sources of uncertainty that affect Argentines. He must put on the leader’s uniform from moment zero,” said Pablo Besmedrisnik, director and economist of Invenómica.

“Today’s instability and the sudden changes that are coming in the different Macro variables are a fact. That is why it is important to describe the situation crudely, but at the same time indicate the first signs of an action plan that will end up forming the necessary stabilization plan“, he claimed.

“It seems to me that it goes have to see some correction but we have to wait for Milei to say (as president, since) many segments of the market were adapting to a victorious Massa,” said analyst Salvador Vitelli.

It is to be expected “a dollar a little more launched and futures a little hotter,” he claimed. “Milei’s speech and the signals he gives will be important, whether it is an ‘incendiary’ Milei like the PASO (August primaries) or a ‘tame’ one in the general elections (October). The latter could be well interpreted by the market,” said Roberto Geretto of Fundcorp.