MSM continues winning streak amid fall in region

14/06/2015 06:47 AST

The Muscat Securities Market continued its winning streak although most of its peers elsewhere in the region remained in a negative territory. Analysts expect the local bourse to continue the positive trend although the Ramadhan season is set to begin this week. “The market may trade sideways ahead of the season, yet the coming sessions are expected to see positive trend following the withdrawal some bears”, said an analyst at a local brokerage house.

The benchmark MSM30 Index ended the week up at 6,482.34 points, while the Sharia Index increased 0.05 per cent to close at 998.21 points.

“Unlike in the region where most shares came under pressure following a pull-back in oil prices, the sentiment in the local bourse is positive”, the analyst said. There is also improved institutional interest , he added.

On Thursday, a total of 868 trades were executed generating a turnover of RO 6.25 million with over 16.2 million shares changing hands.

While Galfar Engineering, which resumed trading on Monday after suspension of its shares for a couple of days, was the most active in terms of volume. Galfar also was the top gainer of the day with its hares witnessing a 4.58 per cent rise.

While Omantel was the most active turnover-wise, Bank Nizwa was the day’s top loser with a 1.35 per cent fall.

At the session close, Omani Investors were net buyers for RO 2.05 million while foreign investors were net sellers for RO 1.88 million followed by GCC and Arab Investors for RO 169,000 worth of shares.

In the region, most Gulf stock markets closed lower last week following a pull back by oil prices.

Investors are closely watching the Saudi market as it opens for qualified foreign investors this week.

Saudi’s main index slipped 0.2 per cent and leading petrochemicals firm Saudi Basic Industries edged down 0.3 per cent, tracking oil, which fell after the World Bank cut its global economic growth forecast.

Kuwait’s index slipped 0.3 per cent but Mezzan Holding, a producer of food, medicines and consumer goods such as soap, surged 32.4 per cent upon listing after a 65.8 million dinar private placement.

Dubai’s index dropped 2.7 per cent as two stocks which had led gains in the last few days, Amlak Finance and Arabtec, both tumbled by the daily 10 per cent limit.

Some Abu Dhabi blue chips also gave up gains made earlier this week, with developer Aldar Properties down 3.2 per cent. That emirate’s index fell 0.8 per cent.

Meanwhile, Qatar’s market, which had ignored the latest rally, closed 0.4 per cent higher and may have attracted cash from investors closing their positions in other Gulf markets.

Egypt’s benchmark slipped 0.2 per cent with most stocks in the red before a monthly meeting of the central bank to discuss interest rates.

Oman Daily Observer