…..to “The Tenaris Index”.
The new composition starts tomorrow (the beginning of the 2nd quarter) and as well as removing three minor-weighting companes from the index (Mirgor, Molinos Rio and Aluar) the sages have decided to raise the weighting of seamless tubemaker Tenaris (US-listed as TS) from 35.22% to 46.48%. Or in other words, nearly half the index is now dependent on a foreign company*. Add the 13.69% weighted to second placed Petrobras, another non-Argentine entity, and over 60% of the supposedly Argentina index is made up of two non-Argentines that happen to do a minor part of their business in the country.
How Argentina still manages to get a seat at the G-20 summits is quite beyond me.
*Sorry guys, we’ve been through this before; whatever Argentines might try to tell you Tenaris is most definitely not an Argentine company. I’ve won money betting on this line item.