Egypt Market threatened with Deletion from MSCI Index

By Yomna Yasser On May 14, 2015

Morgan Stanley Commercial Index threatened the Egyptian Stock Exchange (EGX) 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 16 billion Egyptian pounds (US$2.1billion).

Source: Egypt Independent