Market value of MSM-traded bonds rose to OMR1.3 billion by 2014 end

11/01/2015 07:19 AST

The market value of the bonds traded at the Muscat Securities Market (MSM), at the end of 2014, increased to OMR1,365 million.

This signified a growth by OMR140 million, compared to the corresponding period in the previous year.

Bonds are financial tools that allow companies to get funding for their projects. They also provide investors with the opportunity to increase their savings and get fixed returns without having to take risks. The trading activity at the MSM is not that large compared to other markets known for attracting numerous investors.

Over the past few years, the Capital Market Authority (CMA) has sought to activate the bond market. The CMA is also working towards drafting the legislation of Sukuk, a Sharia-compatible financial tool that can be enlisted at the MSM to help investors diversify their investment portfolios.

The value of bonds trading at the MSM by the end of 2014 stood at OMR33.8 million or 1.5 per cent of the gross volume of trading of the market in 2014 (about OMR2.2 billion). In 2013, the value of traded bonds stood at OMR46.8 million or 2 per cent of its gross trading value.

The bonds listed at the MSM include government development bonds, bank and corporate bonds. The 45th issue of the government development bonds was the highest in terms of the value of trading with OMR19.8 or 58 per cent of its total trading value.

Bank Muscat convertible bonds, which provide 4.5 per cent interest rate, came in second in terms of the value of trading with OMR7 million, followed by Bank Muscat secondary bonds, which provide 8 per cent interest rate, with OMR3.7 million.

Times of Oman