MSM Index loses 91 points in May with RO 58 million trading volume

04/06/2017 00:27 AST

The main index of Muscat Securities Market (MSM) lost 91 points last May due to weak trading after the end of the distribution season and the results of the first quarter of 2017, which showed mixed financial performance.

The MSM main index for May 2017 closed at 5421 points, down 361 points from the level it opened this year.

Investors’ sentiment was affected during the year by several local and international factors, including the continued fluctuation of oil prices and the increase in corporate income tax from 12 per cent annually to 15 per cent, in addition to increasing fees for several government services, which all fuel investors’ concerns about the decline in financial results and the drop in net profits of listed companies.

The financial results of the six commercial banks listed in MSM showed an improvement in performance in the first quarter of 2017, with total net profit increasing to RO 87.4 million compared to RO 85.9 million in the corresponding period of 2016. They also recorded growth in their assets, customers’ deposits, loan portfolios and finance they own. The results of banks are one of the indicators that affect investor decisions.

However, the decline in the financial results of a number of industrial companies had a negative impact on investors, and pushed the industrial sector index to record the highest losses, down 157 points, doubling the losses suffered in April, when it lost 348 points. Other sectors indices recorded a decline, with the exception of the financial sector index, which rose by about 6 points while the service sector index fell 49 points and the Sharia index lost 6 points.

This performance came in the midst of weakness in the volume of daily trading, which amounted to RO 2.5 million, compared to RO 3.6 million in during April 2017. The value of trading last month fell to RO 58 million, the lowest monthly volume during 2017 compared to RO 71.4 million during April.

Shares of 20 companies’ prices rose last month, compared to a drop in the shares of 42 companies and 17 companies maintained their previous levels.

The share of Oman Oryx Leasing Company recorded the best rise and closed at 166 bs up by 40.6 per cent. The share of Al Madinah Takaful rose 26.3 per cent and closed at 120 bs and Alizz Bank shares rose from 68 bs to 82 bs, up 20.5 per cent.

The Shares of Oman Textile Holding top the losers, closing at 570 bs, down 24.2 per cent. Oman National Engineering fell 11.5 per cent to close at 130 bs. Gulf Investment Services dropped 11.3 per cent to close at 94 bs.

Oman Daily Observer