MSCI, formerly Morgan Stanley Capital International, a US company that measures stock performances worldwide to advise potential investors on their decisions, has removed Argentina from their various listings and added it to the dishonourable category of “stand-alone” economies.
MSCI Inc, the world’s largest index provider, warned on Tuesday that the MSCI Argentina Index could be removed from the MSCI Emerging Markets Index should it become harder for foreign investors to access its stock market.
World stocks inched to a record high on Thursday after the United States and China signed a deal to defuse their 18-month trade war, which has weighed on global economic growth and hampered investments.
Latin American stocks and currencies surged on Tuesday with a dovish boost from the European Central Bank and positive headlines from the U.S.-China trade tensions boosting sentiment.
Brazilian stocks fell sharply on Friday as the arrest of the country’s former president, Michel Temer, sparked worries that government debate over key fiscal reforms may be delayed.
Brazil’s presence in the benchmark emerging-market stock index could rise again should incoming President Jair Bolsonaro deliver on his promises to shore up the finances of Latin America’s largest economy, according to MSCI Inc chief executive Henry Fernandez.
Global index compiler MSCI is considering including Argentina and Saudi Arabia in its emerging market indexes at a review of its widely-tracked benchmark on Wednesday, and could potentially announce candidates that may join its indexes in future.