On Monday, the shares of YPF, a state-owned oil firm in Argentina, saw a massive surge following the victory of President-elect Javier Milei. The stock price increased by more than 40%, hovering at $14.90 on that day. This was an unprecedented rise, and it came as a result of Milei’s campaign promise to privatize YPF and reform the Argentine economy.

Milei defeated Economy Minister Sergio Massa in the presidential election held on Sunday. His win was unexpected, but he secured it by a wider margin than anticipated. During his campaign, Milei had expressed his desire to revitalize the struggling Argentine economy and promote the use of the US dollar domestically. He also mentioned potential sales of YPF and other state-controlled companies to improve public accounts.

In a radio interview after his win, Milei stated that his administration would “create value” for companies to be sold beneficially for Argentines. He also expressed his commitment to ending the “model of decadence” in post-election speech, suggesting change was imminent. Investors and markets will closely watch the exchange rate between the peso and dollar as Milei’s economic plan involves prioritizing the US currency over the local peso to help mitigate historic inflation.

Other Argentina-related equities also experienced gains on Monday, including Grupo Financiero Galicia, Banco Macro, and Global X MSCI Argentina ETF. These gains were largely attributed to investors’ anticipation of economic reform under Milei’s administration.

Overall, Milei’s victory has raised expectations for significant changes in Argentina’s economy and financial markets in the coming months.