Argentina Elections Aftermath: Asset Values are Making History

Election Results Revived the Markets

The victory of President Javier Milei and his party in the elections held on October 26, 2023, in Argentina, had a positive resonance in international markets. Following the elections, national assets suddenly gained value, indicating the strengthening of the economic reforms that Milei plans to implement.

Economic Reforms and Decline in Inflation

The election results highlighted the support of the Argentine people for Milei's free-market reforms and strict austerity policies. The information that inflation has notably decreased since Milei took office further strengthened the backing for these policies.

Significant Increase in International Bonds

Investors reported that Argentina's international dollar bonds gained 10-12 points in early trading. In particular, bonds maturing in 2038 rose to approximately 72 cents per dollar, while 2035 bonds reached 70.18 cents.

Rise in Stock Market and Peso:

Shares of Argentinian companies traded in the US also joined in this rise. Stocks in the financial sector saw an increase ranging from 24.7% to 41%, while the Global X MSCI Argentina ETF recovered its 10.2% loss since the beginning of the year and rose 17.3%.

The national currency peso gained 10% in value after the opening, and the main index of the Buenos Aires stock exchange, Merval, highlighted a sharp recovery in investor confidence with an increase of 19%.