MSX ends lower by 109 points in weekly trading

Muscat: Share prices fell in last week’s trading on the Muscat Stock Exchange (MSX) after the announcement that the IPO of OQ Gas Networks Company would take place at the end of this month.

The company said in a press conference held early last week that it intends to offer 49 percent of its capital, equivalent to OMR212 million, for public subscription during September and list the company on the MSX in October. However, it did not specify the target dates for the subscription and listing and the offering price, only indicating that it sent the draft prospectus to the Capital Market Authority (CMA) for review and approval.

The main index of the stock market declined by about 109 points and closed at 4,690 points. The industrial sector index recorded the highest decline at 215 points, the financial sector index lost 160 points, the services sector index declined 35 points, and the Sharia index recorded a decline of 13 points.

OQ Gas Networks is the exclusive operator of the gas transportation system in the Sultanate of Oman, and its subscription is the largest IPO witnessed by the Muscat Stock Exchange in terms of volume.

Investors expect the new initial public offering (IPO) to achieve great success after the success achieved by Abraj Energy Services Company IPO at the beginning of this year, which motivated them to sell shares to provide the highest possible liquidity for the IPO, which pushed the shares to decline.

Trading data issued by the MSX indicated that last week witnessed a decline in the prices of 50 securities, compared to an increase in the prices of only three securities, while 12 securities recorded stability in their prices. The rises included the share of Oman Arab Bank (OAB), which rose by 2.7 percent and closed at 149 baisas. Shell Oman Marketing shares rose by 2.5 percent and closed at 892 baisas, and the new Mohammed Al Barwani Sukuk rose by one baisa and closed at OMR1.17.

The share of Dhofar Food and Investment recorded the highest decline during the week, down by 24.6 percent and closed at 55 baisas, Dhofar Electricity Generation declined by 17.6 percent and closed at 42 baisas, the Building Materials Industry fell by 16.3 percent and closed at 51 baisas, A’Saffa Foods declined by 10 percent and closed at 315 baisas. Shares of 10 companies recorded declines of more than 5 percent, while other declines were less than that.

The declines witnessed by the MSX last week affected the market value of the stock exchange and its main indicators. The total market value fell by the end of Thursday’s trading to OMR23.68 billion, recording weekly losses of OMR165.60 million.

The value of shares traded last week recorded a decline of 33 percent to OMR10.5 million compared to OMR15.9 million in the previous week, while the value of traded bonds increased from OMR25,000 to OMR1.13.