FTSE Russell on Thursday held back from upgrading Argentine equities to emerging market status and removed the South American country from a list of possible upgrades "as a result of the imposition of capital controls" earlier this month.

The move, which retains Argentina as a "frontier" market, is a blow for President Mauricio Macri as he looks to stabilize the country's markets, which crashed sharply after he was soundly beaten by a center-left opponent in a primary election in August. A classification as emerging market would have likely increased the flow of badly needed cash to the country's equity markets.

Copyright Reuters, 2019