Argentina | Election | 18th September 2021 | Virtual Wire
The Primary, Open, Simultaneous and Mandatory elections for deputies and senators were held in Argentina, in order to select the representatives of each party that will run in November in the final elections.
The results were more than surprising. Not only for the ruling party, which according to the
polls promised a good outlook, but also for different opposition parties, which achieved higher percentages than expected.
Without a doubt, it was a day marked by economic optimism, Argentine stocks and bonds soared more than 14% on Wall Street on Monday, which led the S&P Merval to climb almost 5%, while the Country Risk fell just over 4%, all as a result of the defeat of the ruling party. On the New York Stock Exchange, the Argentinean shares were led by Central Puerto (+14.1%); Edenor (+11.2%); Pampa Energía (+10.5%);
Transportadora de Gas del Sur (+10.4%); Grupo Financiero Galicia (+8.8%); and Banco Macro (+7.4%). On the Buenos Aires stock exchange, meanwhile, BYMA's S&P Merval index rose 4.5%, in line with the trend of ADRs traded in New York, after posting a maximum gain of 10.6% and a record high of 83,923.24 points in early trading.
The most important increases of the day in the leading panel are the shares of Central Puerto (+13.7%); Pampa Energía (+9.6%); Transgender (+8.5%); Edenor (+8%); Grupo Financiero Galicia (+7.7%); and Transportadora de Gas del Sur (+7.5%).
As we said, although Monday started with a surprise for investors, they were deflated towards the second part of the trading session, given that the market is now waiting to analyse the Government's next steps in economic matters: whether it will radicalise or moderate its policies in view of the general elections in November.
It should be noted that these repercussions were mainly due to the victory of Juntos por el
Cambio in the province of Buenos Aires, where Peronism is usually strong, thus giving a strong indicator of how Argentines will vote in the final elections.
If Sunday's results were to be carried over to the general elections in November, the ruling the party would lose six senators and nine deputies, meaning it would not have a quorum of its own in either chamber, analysts say.
For their part, various businessmen had expressed fears about La Cámpora, and
that it would begin to occupy key positions in the government since the ruling party itself would be seeking to make an impact by hastening the replacement of ministers. The resignation of several officials close to the vice-president reaffirmed this idea. Now all that remains is to wait until November. This is just a glimpse of what we might find. But not everything has been said yet.