Argentina Equities Show Mixed Action After Presidential Election Leaves Far-Right Candidate Gasping For Air
Portfolio Pulse from Natan Ponieman
Argentina's general election has left the stage divided between far-right libertarian Javier Milei and progressive centrist Sergio Massa, with a November runoff to decide the presidency. The election results have disrupted the balance of power between the two main coalitions that had been disputing power for the last two decades. The country's main U.S.-listed companies showed no clear pattern after the election results. The Global X MSCI Argentina ETF (NYSE:ARGT) is up 18.5% since January, but lost over 17% of its value since Sept. 1. Mercado Libre (NASDAQ:MELI) is up 43.5% since January with a drop of 2.4% in the last week. YPF (NYSE:YPF) suffered a 5.3% drop after the election. Pampa Energia S.A. (NYSE:PAM) saw a drop of 7% in after-hours weekend trading, but recovered more than half of the losses since trading began Monday. Adecoagro SA (NYSE:AGRO) has delivered returns of almost 44% this year. Grupo Galicia (NASDAQ:GGAL) is up 1.32% on Monday.
October 23, 2023 | 8:39 pm
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NEGATIVE IMPACT
YPF (NYSE:YPF) suffered a 5.3% drop after the election.
YPF's drop after the election could be due to uncertainty about the future of the company under a potential Milei presidency, as he has proposed selling off state assets.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 85
NEUTRAL IMPACT
The Global X MSCI Argentina ETF (NYSE:ARGT) is up 18.5% since January, but lost over 17% of its value since Sept. 1.
The ETF's performance has been mixed, with gains since the start of the year but losses since September. The election results could introduce further volatility.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Pampa Energia S.A. (NYSE:PAM) saw a drop of 7% in after-hours weekend trading, but recovered more than half of the losses since trading began Monday.
Pampa Energia's recovery after an initial drop suggests that investors may be adjusting to the election results.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Adecoagro SA (NYSE:AGRO) has delivered returns of almost 44% this year.
Adecoagro's strong performance this year suggests that it has been able to navigate Argentina's economic challenges effectively.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Grupo Galicia (NASDAQ:GGAL) is up 1.32% on Monday.
Grupo Galicia's slight gain suggests that it may be less affected by the election results than other companies.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Mercado Libre (NASDAQ:MELI) is up 43.5% since January with a drop of 2.4% in the last week.
Despite a recent drop, Mercado Libre has shown strong performance this year. The company's diverse operations across South America could help insulate it from Argentina's political instability.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 90