Sunday , July 25 2021

Effect of MCSI: in 2019, they can reach up to $ 800 million



It is worth recalling that Argentina will officially become part of the index starting with May 14, with effective inclusion from June 3, and it is expected next month that MSCI will update the theoretical stock that the indices to be replicated will have a lower above. According to Bull Market Brokers, "Argentina is a emerging market, which means tripping the search potential of its assets, which until a few months ago were part of the Frontera classification, which are high risk sensitivity indexes and they have an extraordinary volatility; are often judged by many speculative portfolios and strong capital caps, indicating that the country will be part of less risky portfolios, albeit dependent on emerging economies such as China, India, South Korea and Brazil. Etam more emerging super economies, it binds future expectations of the local market with what is happening in Asia (which concentrate 70% of emerging weights), "explained Bull Market.

In this respect, the company's research team expected Argentina to be part of two indices: MSCI of iSHARES in May and FTSE, Vanguard, among the largest of the emerging classes, although not yet confirmed by the company that September included local companies in the watch list for future reclassification in 2019, probably in the third quarter. These funds have a net value of $ 31,100,000 and $ 57,000,000, which corresponds to Argentina with a weight of 0,5%, according to MSCI. "This would initially be a $ 450 million demand, equivalent to five ADR negotiating wheels in New York." It could also include us in another emerging iSHARES index of BlackRock, with a management of $ 533 million, but made up of companies called "Large Market Capital" that can only enter Telecom and YPF, "he added. .

Among the companies that could benefit the most are Telecom and Grupo Financiero Galicia due to their capitalization, followed by Banco Macro and Transportadora Gas del Sur, according to the Bull Market. It is worth recalling that with the currency crisis, the country is distinguished from the behavior of the reclassified to the emerging markets. "We believe that this has led to an excessively low depreciation, which will heal in March or April, when the funds speed up demand for local assets for the club," they say from Bul. They estimated that "in the course of the year, some companies could see a significant rise in market prices to return to Argentina the status of the large market (high market value) index."


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