Muscat Stock Exchange amends bid unit for all securities

Muscat: Muscat Stock Exchange (MSX) announced changing the bidding unit to become (one baisa) for all securities, with effect from 2 July 2023.

The announcement stems from the stock market’s keenness to enhance the attractiveness of investment and boost the activity and volumes of trading, thus better serving investors and securities dealers, besides reviving the debt market.

In particular, the decision is expected to contribute positively to investors' decisions by narrowing the gap between supply and demand. It enables investors to submit buy and sell orders in smaller units.

This step, being one of the practices applied regionally and internationally, makes the stock exchange compatible with international standards, augments and regulates the stock market’s continuous competitiveness.

The amendment constitutes a step forward after the stock exchange unveiled a set of initiatives, including the market industry activity and granting license to two companies to practice the activity so far.

Henceforth, modifying the bid unit will influence the movement and performance of market-making activity in a positive manner, since it provides liquidity within a comfortable price range and strikes a balance between buying and selling orders on a security.

The amendment covers all securities, including debt instruments (bonds and sukuk).