MSM-30 index breaches 7,000-mark

16/01/2011 00:00 AST

Shares listed on the Muscat Securities Market (MSM) rose to the highest in more than two years, pushing the MSM general index to breach the psychological barrier of 7,000-mark amid speculation that corporate earnings will beat estimates.

Market analysts said the MSM-30 index, the barometer of the market sentiment, touched an intra-day high of 7,044 points, before closing at 7,026.94 points on Thursday.

Market analysts said that both local institutional investors and foreign institutions extended support in several blue chip counters, especially BankMuscat, Galfar Engineering and Renaissance Services. “This was clearly reflected on the traded volumes of these counters,” said an analyst, who does not want to be named. The traded volumes on the bourse touched 23.17 million, which generated a turnover of RO10.23 million.

“The earnings of banks and manufacturing firms could be better than earlier anticipation, which is driving the market now,” added the analyst.

So far, BankDhofar, Al Anwar Ceramic Tiles and National Finance announced their financial results for 2010. BankDhofar has announced a net profit of RO33.28 million for 2010, up by 31.3 per cent over the previous year.

Al Anwar Ceramic Tiles posted an eight per cent growth in net profit at RO5.38 million for 2010, from RO4.94 million for the previous year. The company’s revenue grew by 9 per cent to RO17.4 million from RO15.98 million during the period.

Profit-booking possible

However, market operators believe that since the share prices have already touched a recent high, profit booking could happen this week. “Investors are likely to book their profit this week. The market is expected to react, before another rally.”

In fact, Omani bourse was the third best performing bourse in the Gulf region with its 6.1 per cent gain in general index in 2010, after Qatar and Saudi, according to a detailed research report prepared by United Securities. Qatar and Saudi bourses have achieved robust gains of 25 per cent and 8 per cent, respectively.

Times of Oman