By Seeking Alpha,
Many Argentine ADRs rose sharply after MSCI (NYSE:MSCI) said it will reclassify the MSCI Argentina Index to Emerging Markets status from Frontier Markets.
Among the biggest movers in after-hours trading are: BBFA BAnco Frances SA (NYSE:BFR) +11%, Grupo Financiero Galicia SA (NASDAQ:GGAL) +10%, and Banco Macro (NYSE:BMA) +10%.
International institutional investors expressed confidence in the country’s ability to maintain current equity market accessibility conditions, a key factor in MSCI’s classification framework, MSCI said.
However, MSCI will revisit the reclassification if Argentine authorities introduced any sort of market accessibility restrictions, such as capital or foreign exchange controls.
MSCI also said it will include the MSCI Saudi Arabia Index in the MSCI Emerging Markets Index, the MSCI ACWI Index, and other global and regional indexes as applicable.
In addition, it will include the MSCI Kuwait Index in its 2019 Annual Market Classification Review for a potential reclassification from Frontier Markets to Emerging Markets status.
Other Argentine ADRs: ARCO, LOMA, PAMP, CRESY, SUPV,PZE, TEO,IRS,TS,TX, TGS.
Previously: IMF board approves $50B stand-by arrangement for Argentina(June 20)