“If A shares underperform other emerging markets on relative terms, it will be reflected in market weight,” and vice versa, he said.
Argentine Anxiety
Argentina’s inclusion had been long awaited by investors, who saw last year’s returns wiped out by a peso rout that forced the government to seek a $56 billion loan from the International Monetary Fund. More recently, the nation’s assets have been pummeled by investor anxiety over President Mauricio Macri’s chance of winning re-election in October.
Saudi Arabia’s stocks have also suffered from geopolitical tensions, trimming gains fueled by expectation for MSCI’s decision. The Tadawul All Share Index slumped 3.6% on Monday, the most since the killing of journalist Jamal Khashoggi in October.
This article provided by Bloomberg News.