MSX index continues to rise for sixth week in row

Muscat: The main index of the Muscat Stock Exchange (MSX) managed last week to record new gains, rising for the sixth week in a row, benefiting from the rise in the shares of a number of leading companies such as Bank Muscat, National Bank of Oman, Omantel, Ooredoo and Oman Cement, at a time when most stocks tended to decline.

Last week, the main index rose 8 points and closed at 4,805 points, surpassing the 4,800-point barrier. However, the performance of other indices was negative. The financial sector index declined by 36 points, the industrial sector index lost 31 points, the service sector index lost 15 points, while the Sharia index recorded a slight increase without one point.

The market value of the securities listed on the stock exchange rose by the end of trading last week to OMR23.90 billion, recording weekly gains of OMR2.9 million. Last week, MSX was affected by a wave of decline in the shares of many companies. The preliminary financial results of the public shareholding companies showed a performance below investors' expectations, despite the increase in the profits of many leading companies, especially banks and several industrial companies and companies operating in the services sector.

The stock market was also affected by the decline in investor sentiment, with the decline in liquidity directed to the stock market in exchange for the increase in liquidity directed to the bond and sukuk market, at a time when investors are waiting for more liquidity in the stock market after the Muscat Stock Exchange announced six initiatives to stimulate trading.

Last week, the prices of 37 securities declined, compared to 16 securities whose prices rose, and 17 securities that settled unchanged at their previous levels. The bourse witnessed a decline in trading value by 34 percent to reach OMR10.8 million compared to OMR16.4 million in the previous week, and the number of transactions executed decreased by 45.5 percent from 3,363 transactions to 1,833 transactions. The daily turnover decreased from about OMR3.3 million to OMR2.7 million. The Muscat Stock Exchange was closed on Thursday due to the Hijri year holiday of 1445.

Trading data issued by the Muscat Stock Exchange showed a decline in the purchases of local investment institutions that focused on the bonds and Sukuk market, accounting for 44.6 percent of the total trading value.

The share of Oman Chrome recorded the best increase, up by 32.8 percent and closed at OMR4.650, the share of Oman Educational and Training Investments rose by 10 percent and closed at 253 baisas, and the share of Oman Flour Mills rose by 9.9 percent and closed at 576 baisas.

Muscat Insurance topped the losing stocks, declining by 9.5 percent and closing at 380 baisas. Dhofar Food and Investment share fell by about 9 percent and closed at 81 baisas. Voltamp Energy declined to 120 baisas, down by 7.6 percent.

Issuance 59 of the Government Development Bond (GDB) came at the forefront of the most traded securities in terms of turnover, after it witnessed transactions worth OMR3,980,000, representing 36.7 percent of the total trading value. -