YPF plummets as Argentina’s ruling party presidential candidate leads vote (NYSE:YPF)

YPF (NYSE:YPF) closed -6.6% in Monday’s buying and selling after the ruling occasion’s candidate in Argentina’s presidential election pulled an upset victory within the first spherical of voting, prompting considerations concerning the continuation of free-spending insurance policies which have pushed triple-digit inflation.

Argentina’s bonds fell as a lot as 10% and had been buying and selling at ~$0.25 on the greenback earlier than bouncing again barely, whereas the Argentine peso’s black market trade charge, which is broadly utilized by locals to purchase scarce {dollars}, was buying and selling at ~1,075 per greenback, from ~900 earlier than the vote, based on The Wall Avenue Journal.

Present Economic system Minister Sergio Massa, the ruling Peronist coalition’s candidate, shocked analysts by ending first within the first-round election with ~37%, whereas Javier Milei, a libertarian economist who has pledged to chop spending and taxes, got here in second with 30%; each males certified for a runoff subsequent month, with the winner taking workplace on December 10.

“We proceed to see YPF as probably the most levered play to Argentina’s presidential election,” Jefferies analysts stated.