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Argentinian Equities Removed From FTSE Frontier Indexes

FTSE Russell have announced that Argentinian securities have been removed from its FTSE Frontier Index Series due to capital controls remaining in place in the country.

In its quarterly review of Frontier Markets Indexes, FTSE confirmed that Argentinian equities will no longer sit within the FTSE Frontier Index Series after the Banco Central de la Republica Argentina’s (Central Bank of Argentina, “BCRA”) to keep in place the capital controls that it had imposed last year with no clear indication of when (or if) they will be removed. FTSE had previously stated if capital controls were to remain in place Friday 20th March then it would remove locally listed Argentinian securities from the FTSE Frontier Series.

In a further note released on 31st March 2020, FTSE confirmed that Argentina will be downgraded from a Frontier Market to an Unclassified Market in September 2020 if capital controls remain in place. It was previously removed from the Watch List for a potential upgrade to an Emerging Market and is now effectively on a the Watch List for a downgrade or complete removal from FTSE Indexes.

In total, 29 Argentinian securities – with the most notable names being Banco Macro, Banco Argentina and Grupo Financiero Galicia – have been removed from the FTSE Frontier Index Series (All-World, Large Cap, Small Cap and Mid Cap). Argentinian equities comprised of almost 10% of the FTSE Frontier Markets Index.

The companies that have been removed, as well as the specific Index(es) the have been removed from, are listed below:

Company
Name

All-Cap

All-World

Large Cap

Mid Cap

Small Cap

BANCO
MACRO S.A. ADS

Yes

Yes

Yes

GRUPO SUPERVIELLE
S.A. ADR

Yes

Yes

Yes

BOLSAS
Y MERCADOS ARGENTINOS ORD SHS

Yes

Yes

Yes

Banco
BBVA Argentina SA

Yes

Yes

Yes

Ternium Argentina

Yes

Yes

Yes

TRANSPORTADORA
DE GAS DEL SUR B

Yes

Yes

Yes

Holcim
Argentina SA

Yes

Yes

Yes

GRUPO
FINANCIERO GALICIA

Yes

Yes

Yes

YPF D

Yes

Yes

Yes

CENTRAL
PUERTO S.A. B

Yes

Yes

Yes

CRESUD
SA

Yes

Yes

Yes

PAMPA
ENERGIA S.A.

Yes

Yes

Yes

IRSA
INVERSIONES Y REPRESENTACIONES S.A.

Yes

Yes

Yes

TELECOM
ARGENTINA SA ADS

Yes

Yes

Yes

ALUAR
ALUMINIO

Yes

Yes

Yes

EMPRESA
DISTRIBUIDORA Y COMERCIALZADORA

Yes

Yes

Yes

ALTO
PALERMO S.A. ADS

Yes

Yes

Yes

CONSULTATIO
SA

Yes

Yes

Yes

SOCIEDAD
COMERCIAL DEL PLATA SA

Yes

Yes

Yes

METROGAS
B

Yes

Yes

Yes

Capex

Yes

Yes

Yes

ENDESA
COSTANERA S.A. B

Yes

Yes

Yes

Mercado
De Valor

Yes

Yes

Yes

BOLDT
SA

Yes

Yes

Yes

Compania de Transpo

Yes

Yes

Yes

Autopistas del Sol S.A.

Yes

Yes

TRANSPORTADORA
DE GAS DEL NORTE S.A. C

Yes

Yes

SAN
MIGUEL B

Yes

Yes

DISTRIBUIDORA
DE GAS CUYANA B

Yes

Yes

Rival index-compiler Morgan Stanley Capital International (MSCI) upgraded Argentina from a Frontier Market to an Emerging Market last year, but if capital controls remain in place then it may open dialogue for the country to either be downgraded or completely removed from MSCI’s Indexes all together. Despite the MERVAL Index ranking as the best Frontier Market in 2019, it may struggle this year if capital controls are to remain in place, especially as index compilers and investors keep a close eye on any future market developments.

About James Eugene (143 Articles)
Interested in many (maybe too many) things. Football, Politics and Emerging & Frontier Markets, to name a few. Twitter: @James_Eugene

4 Trackbacks / Pingbacks

  1. FTSE Downgrades Peru From Emerging Market To Frontier Market – Frontier Market News
  2. MSCI: Argentina Remains An Emerging Market… For Now – Frontier Market News
  3. MSCI: Turkey’s Emerging Market Status is Now Under Scrutiny – Frontier Market News
  4. Vote To Delist Aberdeen Frontier Markets Set For August 18th – Frontier Market News

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