Investors focus on shares of energy companies on MSX

Business Saturday 24/February/2024 18:07 PM
Investors focus on shares of energy companies on MSX

Muscat: Investors focused on shares of energy companies on the Muscat Stock Exchange (MSX) during the week amid positive expectations of improved financial performance of companies that have faced many challenges over the past two years.

Shares of energy companies were supported by positive expectations of increased demand for electricity with the launch of several modern city projects such as Sultan Haitham City, Al Khuwair Downtown, the Waterfront, and a number of other real estate development projects. The Ministry of Housing and Urban Planning had signed 35 development and partnership agreements for the Sultan Haitham City project for the first phase (2024-2030) on February 14.

The pacts were signed for the future city projects for housing and urban planning with strategic partners, with an investment value exceeding OMR1 billion. This news supported positive expectations of economic and urban growth and high demand for many services, including electricity, water and power services.

During the week, energy company shares witnessed strong purchase orders from investors, especially Al Suwadi Energy and Al Batinah Energy shares, which announced cash dividends of 14 percent and 12 percent, respectively, and will be paid to shareholders in two stages in June and December.

During the week, energy companies accounted for about 49 percent of the total number of shares traded and 28 percent of the total number of deals executed. The number of shares traded for energy companies during the week reached 56.7 million shares and 1,282 deal executions were seen.

Al Suwadi Power topped the most traded energy companies in terms of number of shares after witnessing the trading of 13.74 million shares, Phoenix Energy came in second place with trades amounting to 13.74 million shares, while Sembcorp Salalah witnessed the trading of 13.53 million shares, Al Batinah Energy shares recorded a record increase was 54.7 percent and closed at 65 baisas. Al Suwadi Energy came in second place, rising 41.3 percent and closing at 65 baisas as well.

Last week, the Muscat Stock Exchange witnessed an increase in trading value, which rose to OMR14.1 million compared to about OMR11 million in the previous week. The number of transactions executed increased by 29 percent from 3,554 deals to 4,588 deals, and the number of shares traded also increased from about 85.1 million to more than 116 million shares.

Shares of banks and financial companies put pressure on the main index of the stock market and the financial sector index, with the main index declining by about 59 points and closing at 4,570 points. The financial sector index declined by 159 points and closed at 7,190 points. The industrial sector index recorded a decline of 65 points, and the Sharia index declined by two points. Energy companies supported the services sector index, rising 33 points, continuing its gains for the fifth week in a row.

The Muscat Stock Exchange witnessed a decline in the prices of 35 securities, compared to 22 securities whose prices rose and 18 securities that stabilised at their previous levels. The recorded declines affected the market value of the Muscat Stock Exchange, which fell at the end of trading on Thursday to OMR23.74 billion recording weekly losses of OMR110 million.

National Aluminum Products shares recorded the highest declines, seeing a decline of 11.1 percent and closing at 40 baisas, Dhofar International Development and Investment shares declined by 9 percent and closed at 200 baisas and Dhofar Electricity Generation shares fell by 8.8 percent and closed at 41 baisas.

Sohar International Bank topped the most traded companies in terms of trading value of OMR1.9 million, accounting for 13.9 percent of the total trading value. OQ Gas Networks came in second place with OMR1.8 million and Sembcorp Salalah came in third place with a trading value of OMR1.3 million. Omantel came in fourth place in trading value at OMR1.1 million and Al Suwadi Energy ranked fifth with trades worth OMR908,000.