Argentina

Argentina Stocks Soar After Macri Party Election Wins

Argentina’s equities are jumping higher after the ruling coalition did better than expected in primary legislative elections Sunday.

The results highlight greater-than-expected support for President Mauricio Macri’s reform agenda at the expense of left-wing populism, Capital Economics writes.

The Global X MSCI Argentina exchange-traded fund (ARGT) was up 3.3% today, while the iShares MSCI Emerging Markets ETF (EEM) was up 1.3% and the iShares MSCI Frontier 100 ETF (FM) was up 1.9%. But the big winners today are Banco Macro (BMA), rose 11.6% in U.S. trading, and Pampa Energia (PAM) was higher by 10%. Bank operator Grupo Financiero Galicia (GGAL) moved up 9.3%, Petrobras Argentina (PZE), 9.4%, and BBVA Banco Frances (BFR) was up 7%. One of Argentina’s largest companies, commercial real estate manager IRSA Propiedades Comerciales (IRCP), was up 3.6%. The largest company in the ETF, internet retail play MercadoLibre (MELI), is down 1.8%.

Here’s more from Capital Economics’ Latin America economist, Edward Glossop, who notes that Argentina continues to grapple with a gaping…

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