They release key information this week for investors looking to Argentina



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The data will be published by the investment bank Morgan stanley, and has already made noise at the Buenos Aires Stock Exchange during the week.

The rise recorded by some newspapers in recent days has been attributed by analysts to an expected deterioration in Argentina.

There are many interpretations, and some experts even consider that some stocks would end up benefiting from this possible reduction.

Is that While Argentina currently has a very low participation among investment objectives such as “emerging”, this condition would change in the event of a reclassification.

Is that if the country descends to the “frontier” level, its participation as an investment destination among these types of nations would be much greater.

The few companies that remain included in emerging indices could suffer, but the rest of the papers would benefit, analysts say amid market ups and downs.

Analysts speculate that various international funds would reposition themselves on local stocks, and that new investment flows would enter due to the significant weight that Argentina would have in the “frontier” category.

The release of the MSCI index is scheduled for June 8, when it will determine whether to keep Argentina in its category or lower it.

The country managed to survive this consultation after reviews carried out in November 2019 and February 2020, but market watchers maintain that this time around it will not, and Argentina could fall into that weighting.

A year ago, MSCI warned that Argentina could be withdrawn from the group of “emerging” countries if the deterioration in access to the foreign exchange market persisted.

As currency controls not only persist, but have intensified, analysts speculate that Morgan Stanley will bring the country down this time.

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