Why Argentinian Stocks Are Cratering Today

Shares of Argentina-based companies are plummeting today. The country's top publicly traded utilities, Central Puerto (NYSE: CEPU), Pampa Energia (NYSE: PAM), and Transportadora de Gas del Sur (NYSE: TGS) tumbled more than 43% by 10:30 a.m. EDT on Monday. Meanwhile, cement-maker Loma Negra (NYSE: LOMA) and oil and gas producer YPF (NYSE: YPF) also plunged, falling nearly 58% and 30%, respectively, in early-morning trading. Driving the downdraft in Argentina-based stocks was a surprise election result.

Argentinians went to the polls yesterday, with many voicing their displeasure over the policies of President Mauricio Macri. As a result, he lost the primary election by a wider-than-expected margin. That outcome sent shockwaves across the country's financial sector since it increases the odds that he won't win re-election in October. Macri won only 32.1% of the vote, badly trailing Alberto Fernandez, who teamed up with former president Cristina Fernandez de Kirchner as his running mate.

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Source Fool.com