Globant SA falls as MSCI yanks Argentina's emerging market status

Adecoagro

25/06/2021 19:50

(Updates)
    ** U.S.-listing of IT services firm  GLOB.N  down 2.2% at
$222.68, set for worst session since May 12
    ** Index provider MSCI to remove Argentina from its
benchmark emerging markets stock index  .MSCIEF  over strict
capital controls issue 
    ** MSCI will reclassify country to Standalone Markets status
during Nov index review  urn:newsml:reuters.com:*:nL2N2O62X6
    ** Argentina's Merval stock index  .MERV  tumbles over 3.2%
 urn:newsml:reuters.com:*:nL2N2O71SA
    ** GLOB down 2.8% at $221.15; co has weighting of over 81%
in the MSCI Argentina index, which measures performance of large
and mid-cap segments of the Argentine market
    ** Index's other two constituents fall: consumer staples
company Adecoagro SA  AGRO.N , down 9.9% and local energy major
YPF  YPF.N , slips 7% 
    ** J.P. Morgan analysts say GLOB could see forced selling of
~$494 mln, while AGRO and YPF could see $63 mln and $55 mln in
forced selling respectively
    ** Reclassification could lead to ~$300 mln in passive
outflows; GLOB could be hit by ~$250 million, and YPF and
Adecoagro ~$30 mln each - Morgan Stanley
    ** iShares MSCI Argentina and Global Exposure ETF  AGT.P ,
Global X MSCI Argentina ETF  ARGT.K  both down over 2%, set for
worst day since May 12 
    ** YTD, GLOB shares up 2.3%, YPF gained 3.1%, AGRO rose 50%

 (Reporting by Devik Jain and Lisa Mattackal)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))