On Monday, the New York-listed shares of YPF, the state-owned oil firm in Argentina, surged more than 40% following the victory of Javier Milei, the presidential candidate of the Liberty Advances coalition. Milei defeated Economy Minister Sergio Massa in the presidential runoff election on Sunday and has pledged to reform the Argentine economy, including privatizing YPF.

Milei’s win caused a surge in other Argentina-related equities as well, such as Grupo Financiero Galicia, Banco Macro, and the Global X MSCI Argentina ETF. In a radio interview after his victory, Milei stated that his administration will “create value” for companies to be sold beneficially for Argentines. He also expressed his commitment to ending the “model of decadence” in a post-election speech, suggesting that change is imminent.

Moving forward, investors and markets will closely watch the exchange rate between the peso and the dollar as Milei’s economic plan involves prioritizing the US currency over the local peso to help mitigate historic inflation.