MSM index retreats for fifth month in a row

Muscat: The main index of the Muscat Securities Market (MSM) lost 235 points in July, retreating for the fifth month in a row. The index ended last month trading at 4,336 points, bringing the losses this year to 762 points.
The index did not receive the expected support from the financial results of the first half of this year announced in July. The prices of 48 companies fell, 11 companies rose while 17 companies remained stable.
These transactions came at a time when the national economy showed, during the last months of this year, a positive performance. The gross domestic product in current prices in the first quarter of this year rose to more than OMR7 billion, compared to OMR6.6 billion during the same period last year, with a growth of 6.5 per cent.
The gross domestic product (GDP) of petroleum activities increased by 16.5 per cent to OMR2.3 billion. The GDP of non-oil activities grew by 2 per cent to OMR4.9 billion. The Sultanate's revenues in the first five months of this year rose to about OMR4.1 billion, with a growth of 23.2 per cent, compared to the first quarter of last year. The Sultanate also reduced its expenditures to reach OMR5.1 billion, compared to OMR5.3 billion in the same period last year, which contributed to reducing the deficit by 46.2 per cent to OMR1.1 billion by the end of last May.
However, this positive performance was not reflected in the performance of MSM, and the prices of shares continued to decline. All sectoral indices closed down, and the index of the industry sector showed the highest decline by 8.1 per cent. The index lost, in July, 494 points and closed at 5,605 points. The Sharia market index declined by 7 per cent, the financial sector index by 4.5 per cent and the services sector index by 3.9 per cent.
In July, MSM witnessed a turnover of OMR56.9 million compared to OMR36 million in June. The number of executed transactions rose to 8,962 from 6,341 in June.
Dhofar Tourism Company accounted for 41.9 per cent of the total value of the traded shares, at a value of OMR23.8 million. Bank Muscat ranked second with OMR8.9 million, accounting for 15.7 per cent of total trading value. Al Madinah Takaful was third with a traded value of OMR2.8 million.
ACWA Power Barka was the best performer, closing at 780 baisas, up by 4.8 per cent. The National Aluminium Products Company gained 3.8 per cent to close at 378 baisas. The National Pharmaceutical Industries rose by 3.4 per cent to close at 120 baisas.
Al Jazeira Services was the biggest loser, closing at 112 baisa, down by 27.7 per cent. Voltamp Energy fell to 236 baisa, down by 18.6 per cent. Raysut Cement fell to 486 baisa, down by 18.4 per cent.