MSM volumes touch RO 1.3 bn

06/07/2014 08:32 AST

The trading volume of Muscat Securities Market (MSM) at the first half of this year rose to about RO 1.3 billion; a growth by 14.1 per cent compared to the similar period last year supported by the good performance of the listed companies, the increase in government expenditure, the announcement of new projects and maintaining oil prices at higher level than estimated in the budget. During the first half of this year, many companies have increased their capitals after they were approved by the annual general assemblies. Many companies offered part of their capital for public subscription such as Takaful Insurance, Al Batinah Power and Al Sawadi Power.

The government also offered 142.5 million shares at Omantel for public subscription. The new listings ensure more liquidity at the market thus contributing to increasing the volume of trading at the first half of this year.

The statistics prepared by Oman News Agency (ONA), based on the monthly bulletins of MSM, point out that the number of securities traded at the first half of this year stood at 3.8 billion compared to 4.5 billion at the corresponding period last year.

The statistics also show that the highest trading volume was recorded in January with more than 1 billion stocks worth RO 315.3 million.

The lowest trading volume was recorded in May with 406.6 million stocks worth RO 145.8 million. The market recovered again with the listing of Al Sawadi and Al Batinah power companies who received 23.2 per cent of the total value of trading during June with RO 48.9 million.

The new listings and share price hike pushed the market capitalisation up to RO 14.9 billion compared to RO 14.1 billion at the end of December 2013. MSM recorded RO 762 million gains during this period.

Despite the downturn wave witnessed by some GCC markets last May and June, MSM 30 Index managed to maintain most of its gains to close at 7,008 points at the end of June, gaining 173 points or +2.5 per cent compared to December 2013, thanks to the growth in the number of shares by leading companies, especially those listed in the financial sector.

The sectoral indicators, with the exception of the financial sector indicator, which rose by 4.8 per cent, witnessed a decline. The industry, services and Sharia sector indices witnessed a decline with the Sharia sector recording the biggest decline by 4.2 per cent.

Oman Daily Observer