MSX Index Rebounds: How Strong Local Institutional Buying Signals Opportunities for Investors in Oman
المسكات عنب طيب الشذا: The Muscat Stock Exchange (MSX) main index resumed its upward trend last week following a decline, buoyed by gains in banking, energy, and industrial sectors as local funds and institutional investors shifted towards buying activities.
By the end of last week’s sessions, the main index finished at 5,123 points, marking an increase of 41 points. The industrial sector index registered the largest rise, gaining 34 points, while the services sector index added 18 points and the financial sector index increased by 17 points. Conversely, the Sharia index experienced a slight drop, closing just under one point lower at 471 points.
This rebound enabled the main index to surpass the 5,100-point threshold, which it had slipped below the previous week. Investor focus was directed towards prominent shares, including Bank Muscat, Sohar International Bank, National Bank of Oman, Al Safwah Foods, Salalah Mills, OQ Gas Networks, Asyad Shipping, and OQ Basic Industries. Significant contributions also came from energy companies such as Al Anwar Energy, Al Batinah Power, and Al Suwadi Power.
The uptick in share prices propelled the MSX’s market capitalization back to the RO 30 billion mark, finishing the week at RO 30.143 billion, reflecting an increase of over RO 200 million.
Local institutional funds and investment firms increased their buying activity, absorbing a wave of selling from individual investors. Trading data revealed that Omani individual investors’ sales accounted for 23.4% of the total value of transactions, while purchases were only 17.8%. Local institutional investors made up 76.5% of purchases and reduced their sales to 71.1%, which further enhanced market gains.
Weekly trading value was recorded at RO 79.779 million, a decrease from about RO 82 million the previous week. The number of executed transactions rose to 16,427، مقارنة ب 16,328 the week prior.
OQ Exploration and Production (OQEP) emerged as the most traded company by value, with 16.5 مليون ريال عماني in trades, constituting 20.6% of the total. Following closely was Sohar International Bank, with RO 14.9 million, and OQ Basic Industries, which saw 12 مليون ريال عماني، أو 15.1% of the total traded value.
During the week, 33 securities advanced, 34 declined، و 24 remained unchanged. Oman Packaging led the gainers, rising 10.4% to close at 158 baisas. Al Maha Petroleum Products Marketing followed with an 8% gain to 990 baisas, while Al Anwar Energy climbed 6.4% ل 115 baisas.
On the downside, Dhofar Food and Investment reported the most significant decline, falling 10% ل 63 baisas. Fincorp decreased by 8.7% ل 42 baisas, and Raysut Cement lost 7.6% to close at 85 baisas.
In the bonds and sukuk market, Liva mandatory convertible bonds (issued in 2024) topped the gainers, up 1.4% ل 71 baisas, while Ominvest mandatory convertible bonds (issued in 2024) suffered the largest decline, down 10.5% ل 76 baisas. Overall trading in the bonds and sukuk market was limited, amounting to RO 30,000, down from approximately RO 87,000 the previous week.
On the corporate front, OQ Gas Networks announced that its Board of Directors has proposed an interim cash dividend of 5.6 baisas per share for the first half of the year, which will be presented at the ordinary general meeting scheduled for October. Earlier in March, OQ Gas Networks had distributed cash dividends of 4.92 baisas per share. Its shares concluded last week at 162 baisas، زيادة قدرها 4 baisas, with a market capitalization of RO 701.5 million. — أونا
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The recent upward trend in the Muscat Stock Exchange (MSX), driven by local institutional investments in sectors like banking and energy, suggests a renewed confidence in Oman’s economic recovery. وهذا يخلق فرص للشركات to capitalize on increasing market stability and investor interest, particularly in high-performing sectors. Smart investors should consider expanding their portfolios in these resilient industries, while entrepreneurs may find niche avenues for innovation, especially in areas aligned with the rising demand for services within the financial and industrial sectors.
