MCSI Effect: in 2019 they can reach the country up to US $ 800 million


It is worth remembering that Argentina will formally become part of the index which began on May 14, with inclusion effective starting June 3 and it is expected that next month, the MSCI will update the theoretical composition that the index to be replicated must have upward. According to the Bull Market Brokers stock exchange company, "Argentina is a developing market which means triple the potential demand for assets which, until a few months ago, were part of Frontera's classification, which is an index with high sensitivity to risk and they have extreme volatility; they are often sued by a very speculative portfolio and strong capital restrictions. "This shows that the country will be part of a portfolio that is less risk-sensitive, although it depends on emerging economies such as China, India, South Korea and Brazil. "By relying now on more emerging super economies, it connects the future of expectations in the local market with what is happening in Asia (which focuses 70% of the weight that appears)," explained Bull Market.

In this line, the entity's research team anticipates that "Argentina will be part of two indexes: MSCI from iSHARES from May and FTSE, Vanguard, which is one of the largest of the emerging classes, although this has not been confirmed by the company, which in September includes local companies in the Monitor List for future reclassification in 2019, possibly in the third quarter. "This fund has a net worth of US $ 31,100,000 and US $ 57,000 million, according to Argentina weighing 0.5%, according to MSCI. "This will initially represent a demand of US $ 450 million, which is equivalent to five wheels of ADR negotiations in New York." This too "can put us in the newly emerging iSHARES BlackRock index, with management amounting to US $ S53,000 million, but consisting of companies called & # 39; Modal Pasar Besar & # 39 ;, where only Telecom and YPF can enter, "he added.

Among the companies that benefited the most, were Telecom and Grupo Financiero Galicia because of their capitalization, followed by Banco Macro and Transportadora Gas del Sur, according to Bull Market. Keep in mind that with a currency crisis, the country experiences dissociation from behavior that is reclassified into emerging markets. "We believe that this results in a relatively excessive decline that will tend to recover from March or April when funds accelerate demand for local assets for composition," they said from Bull. And they estimate that "throughout the year some companies can see their market prices significantly increase to return to Argentina with the status of the Big MarketCap Index (companies with high market value)".


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