YPF plunges as Argentina’s ruling party presidential candidate leads vote (NYSE:YPF)

YPF (NYSE:YPF) closed -6.6% in Monday’s trading after the ruling party’s candidate in Argentina’s presidential election pulled an upset victory in the first round of voting, prompting concerns about the continuation of free-spending policies that have driven triple-digit inflation.

Argentina’s bonds fell as much as 10% and were trading at ~$0.25 on the dollar before bouncing back slightly, while the Argentine peso’s black market exchange rate, which is widely used by locals to buy scarce dollars, was trading at ~1,075 per dollar, from ~900 before the vote, according to The Wall Street Journal.

Current Economy Minister Sergio Massa, the ruling Peronist coalition’s candidate, surprised analysts by finishing first in the first-round election with ~37%, while Javier Milei, a libertarian economist who has pledged to cut spending and taxes, came in second with 30%; both men qualified for a runoff next month, with the winner taking office on December 10.

“We continue to see YPF as the most levered play to Argentina’s presidential election,” Jefferies analysts said.