Financial Stocks Boost Muscat Stock Exchange: What It Means for Investors and Businesses in Oman
MUSCAT: The financial sector continued to drive activity on the Muscat Stock Exchange (MSX), with its sector index extending gains for the third consecutive week as investors increased their holdings in banking, insurance, and investment stocks.
The financial sector index rose by 98 points last week, adding to nearly 300 points gained over the previous two weeks. It closed at 13,034 points, buoyed by advances in shares of Bank International, Oman Arab Bank, Ahli Bank, Bank Nizwa, Al Sharqiyah Investment Holding, Ominvest, Al Madina Takaful, and United Finance.
Despite gains in financial stocks, the broader market declined. The benchmark MSX index fell 23 points to close at 7,634, while the industrial index dropped 83 points and the services index lost 37 points. The Sharia Index also slipped by one point, ending the week at 611.
Market capitalisation decreased by RO 86 million, settling at RO 36.66 billion, as the number of declining stocks outpaced gainers. A total of 55 securities closed lower, compared with 21 gainers, and 14 remained unchanged.
However, trading activity strengthened notably. The total trading value increased by 9.3% to RO 191.4 million, up from approximately RO 175 million the prior week, while the number of executed transactions surged 65% to around 41,700 deals.
Investor focus centered on major stocks including OQ Base Industries, OQ Gas Networks, Bank International, Asyad Shipping, and Bank Muscat. Bank Muscat led the list of most actively traded shares by value, with RO 46 million traded, representing 24% of total turnover. It was followed by Bank International with RO 33.7 million, OQ Base Industries at RO 32.5 million, OQ Exploration and Production at RO 18.1 million, and OQ Gas Networks at RO 17.5 million.
Top performers last week included Oman Arab Bank, which rose 6.7% to 238 baisas, and Al Maha Ceramics, which gained 4.7% to 263 baisas. Al Sharqiyah Investment increased 3.9%, Ahli Bank added 3%, and OQ Exploration and Production rose 2.8% to close at 470 baisas.
On the downside, Salalah Port Services led the decliners with a nearly 19% drop to 462 baisas. Salalah Mills fell 16.5% to 560 baisas, while Al Hassan Engineering, currently under liquidation, declined 12.5% to close at 7 baisas.
In corporate news, Al Anwar Investments announced its board’s recommendation to pay a cash dividend of 5 baisas per share and a bonus issue of three shares for every 100 shares held. This proposal will be presented for shareholder approval at the company’s annual general meeting on June 30.
The company reported a net profit of RO 765,000 for the financial year ended March 31, down from RO 2.3 million the previous year. Its share price closed the week at 169 baisas. — ONA
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The sustained strength in the financial sector on the Muscat Stock Exchange, despite broader market declines, signals robust investor confidence in banking and investment stocks—a key opportunity for businesses to leverage financial partnerships and capital. However, the contrasting sector performances and falling market capitalization highlight risks linked to volatility in industrial and services sectors, urging entrepreneurs and investors to adopt a diversified, risk-aware approach. Smart investors should monitor high-liquidity financial and energy stocks, while cautiously navigating weaker sectors to balance growth and stability.
