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…