As Argentine Peso Craters, Stock Pickers Pin Hope on Upgrade
- Merval stock index is hurting after two years of gains
- Survey shows 58% of investors think Argentina deserves a lift
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Argentine stock investors battered by a currency collapse may be on the cusp of some relief as MSCI Inc. considers an upgrade to emerging-market status.
Morgan Stanley says the benchmark equity index could jump 20 percent if the classification is raised in a decision set to be announced June 20, or sink 5 percent if it’s left as a lower-grade frontier market. Funds with $1 trillion in assets follow MSCI’s indexes, and JPMorgan Chase & Co. says an upgrade would bring $3.8 billion of inflows to the local stock market.