Argentina stands alone as MSCI yanks emerging market status (updated)

Adecoagro

24/06/2021 22:23

(Adds details, analyst comment)
    By Rodrigo Campos
    NEW YORK, June 24 (Reuters) - Index provider MSCI said on
Thursday it will reclassify the MSCI Argentina Index from
Emerging Markets to Standalone Markets status during its
November index review.
    "The prolonged severity of capital controls with no
resolution is not in line with the Market Accessibility criteria
of the MSCI Emerging Markets Index," said Craig Feldman, global
head of index management research at MSCI.
    "This has led to the reclassification of the MSCI Argentina
Index from Emerging Markets to Standalone Markets status."
    The main implication of the move "would be forced
divestments from (exchange traded funds) of close to $610
million from the three constituents of the MSCI Argentina
Index," according to JPMorgan analysts.
    Tech services company Globant  GLOB.K , consumer staples
company Adecoagro  AGRO.K  and local energy major YPF  YPF  are
the index components, with Globant taking more than 81% of the
weighting.
    According to the JPMorgan analysis, Globant could see forced
selling of about $494 million, while Adecoagro and YPF could see
$63 million and $55 million in forced selling respectively.

 (Reporting by Rodrigo Campos
Editing by Chris Reese and Alistair Bell)
 ((rodrigo.campos@reuters.com; @RodrigoCampos;))