Morgan Stanley Commercial Index threatened the Egyptian Stock Exchange with deletion from its emerging markets index, after removing Telecom Egypt Company from its index, according to a statement.
"We may lead to Egypt being removed from the index if it continues with its poor performance," MSCI said in a statement on its website.
In the index compiler MSCI's semi-annual review on Tuesday, four companies only remain currently in the index they are EFG-Hermes, Commercial International Bank, Global Telecom and Orascom Telecom.
Also, Morgan Stanley will be adding Sidi Krir to the MSCI Egypt Small Cap Index at the end of May, while Maridive & Oil Services will be removed from the index.
Egypt's market has lost about 6 percent since the beginning of the year, while the EGX market capital has lost about LE16 billion (US$2.1billion).