Muscat Securities Market Capitalisation Hits RO 31.3 Billion: Key Implications for Investors and Business Growth in Oman
MUSCAT: The Muscat Stock Exchange (MSX) main index declined by 66 points last week, closing at 5,544 points. This drop followed five consecutive weeks of gains exceeding 500 points, as local investment funds and institutions engaged in profit-taking. The downturn impacted most sector indices, with the financial sector suffering the largest loss, falling 153 points due to declines in banking and major investment stocks. The industrial and services sectors also declined by 23 and 13 points respectively. In contrast, the Sharia-compliant index rose slightly by 4 points, closing at 475 points.
Trading activity weakened significantly, with the total trading value dropping by 34 percent to RO 178.8 million, compared to RO 271.1 million the previous week. The number of executed transactions fell by 16.8 percent to 32,628. Local institutional and fund investors were net sellers, accounting for 75.1 percent of total sales, while Omani individuals were net buyers, representing 21.1 percent of total purchases.
Trading remained concentrated among a few key stocks — Bank Muscat, Bank Sohar International, OQ Base Industries, OQ Exploration and Production, and Asyad Shipping — which together made up RO 137.8 million, or 77 percent of the total trading value.
Despite the overall decline in share prices, with 40 securities falling and 26 rising, the MSX’s total market capitalization remained steady at RO 31.327 billion. This stability was supported by the listing of the 77th Government Development Bond issue worth RO 100 million.
A significant milestone was marked with the launch of the new Promising Companies Market, where Bawariq Nizwa became the first company to list, debuting with a capital of RO 1.956 million and a share price of 141 baisa.
Among the top gainers, Financial Centre Company (Fincorp) surged 16.6 percent to close at 42 baisa, followed by Al Maha Ceramics, which rose 9 percent to 290 baisa, and Oman Refreshments, gaining 8.9 percent to RO 1.492. On the other hand, International Financial Investments Holding led the decliners, dropping 10.8 percent to 156 baisa, with Barka Desalination and Al Anwar Investments slipping 4.7 percent and 4.5 percent, respectively. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent profit-taking and decline in the Muscat Stock Exchange after rapid gains signal a cautious phase for investors, highlighting potential short-term volatility, especially in financial and industrial sectors. However, the launch of the Promising Companies Market offers new growth opportunities for entrepreneurs and investors eyeing emerging firms, suggesting a strategic pivot towards diversification and innovation in Oman’s capital markets. Smart investors should monitor institutional activities closely and consider targeted investments in high-potential listed newcomers and sectors demonstrating resilience, like Sharia-compliant stocks.
