Argentina-focused ETF falls after far-right outsider Milei wins primary election

American Lithium

14/08/2023 15:05

(Updates)
    ** Argentina-focused Global X MSCI Argentina ETF  ARGT.P 
falls 5.1% after far-right libertarian economist Javier Milei
posts shock-win in the country's primary election
    ** ARGT falls to over one-month low
    ** With some 90% of ballots counted, rock-singing outsider
candidate Milei had 30.5% of the vote, far higher than predicted
    ** Separately, investment bank JPMorgan's analysts recommend
staying "market weight" on Argentina's government bonds after
Monday's surprise primary election win
    ** Argentina's government bonds likely to fall 3-4 points,
Morgan Stanley's analysts predict
    ** Lithium miners Livent  LTHM.N  and U.S.-listed shares of
American Lithium  AMLI.O , both of whom have operations in
Argentina, fall 3.2% and 6.1%, respectively
        ** "Mr. Milei supports a policy agenda that includes the
dollarization of the economy, a sharp cut in public spending and
public pensions, and the privatization of state-owned
companies," writes Sergio Armella, economist at Goldman Sachs in
a note
  
    ** Including session's losses, ARGT has gained nearly 30%
YTD

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))