Oman's share index grew 7% in 2016

Muscat: The value of trading at Muscat Securities Market (MSM) in 2016 stood at OMR958.8 million in a year characterised by share and oil price fluctuation. The implications of the oil price slump have affected Oman’s national economy, as well as other economies of the region. There has been concerns among stock investors that the financial results of the companies may be affected by the oil price drop and public expenditure cut. Many investors, thus reduced their stock investments, as well as the cash liquidity availed for stock investments.
The value of trading has been falling for the third successive year as it declined by 31 per cent compared to the OMR1.4 billion in 2015. The value of trading increased in 2013 and 2014 to OMR2.2 billion.
MSM 30 Index rose in 2016 by 7 per cent to close at 5,782 points, registering an increase by 376 points. Thus, the index covered part of its loss in 2015 when it lost 937 points.
The MSM index reached a record low since April 2009 on January 21, 2016 as it declined to 4,867 points due to oil price slump, which was about OMR22 per barrel. The oil price recovery and sentiment of investors about the Sultanate's ability to contain the negative effects of the oil price drop on the Omani economy restored confidence at the market. The index crossed 6,000 points in May, but failed to climb again since that time.
All sectoral indices went up, especially the financial sector indicator, which gained 1,194 points, the industry sector index, which gained 636 points during the year, the Sharia market index which gained 13 points and the service index, which went up slightly by 3 points.
The turnout by local investors in the market has been great as they purchased 82.6 per cent of the total value of trading compared to selling 73.6 per cent.
The statistics on MSM trading point out that Bank Muscat topped the list of the most traded companies in 2016 with OMR135 million or 14 per cent of the total value of trading, followed by Omantel with OMR70.9 million or 7.4 per cent of the total value of trading and Al Anwar Holding with OMR58 million or 6 per cent of the total value of trading.
Shares of 42 companies went up compared to 50 companies, which went down and 17 companies that remained unchanged compared to the previous year.
Omani Packaging Company's share has been the biggest gainer as it closed with OMR2.210; an increase by 364 per cent compared to the previous level, which was 476 baisas. National Gas Company's share increased from 302 baisas to 572 baisas. Al Jazeera Steel Products Company's share increased from 136 baisas to 246 baisas; an increase by 80 per cent.