11/02/2015 21:37 AST
MSM30 Index closed in the red at 6,631.80 points, down by 0.89 per cent. After a decline of 0.31 per cent, the MSM Sharia Index ended at 983.52 points. Bank Muscat was the most active in terms of volume as well as turnover. The top gainer of the day was Dhofar Insurance, up by 4.76 per cent, while Ahli Bank, down by 4.35 per cent, was the top loser of the day.
A total number of 1,421 trades were executed during the day's trading session generating turnover of OMR8.27 million with more than 21.5 million shares changing hands. Out of 53 traded stocks, seven advanced, 27 declined and 19 remained unchanged. GCC & Arab Investors were net buyers for OMR874,000 followed by Omani investors for OMR337,000 while Foreign Investors were net sellers for OMR1.21 million worth of shares.
Financial Index declined strongly by 1.21 per cent to close at 8,308.74 points. Dhofar Insurance and Ominvest increased by 4.76 per cent and 0.87 per cent respectively. Ahli Bank, Al Sharqia Investments, Taageer Finance, ONIC Holding and Gulf Investments declined by 4.35 per cent, 3.09 per cent, 3.03 per cent, 2.44 per cent and 2.13 per cent respectively.
Industrial Index ended on a flat note at 8,694.55 points, up marginally by 0.01%. National Aluminium, Gulf International Chemicals and Oman Cables increased by 2.96 per cent, 1.97 per cent and 0.25 per cent respectively. Al Hassan Engineering, Oman Fisheries, Galfar Engineering and Al Maha Ceramics declined by 1.50 per cent, 1.41 per cent, 0.56 per cent and 0.34 per cent respectively.
Services Sector Index closed at 3,559.27 points, down by 0.35 per cent. United Power and Sembcorp Salalah increased by 2.81 per cent and 1.10 per cent respectively. Port Services, National Gas, Al Jazeera Services, Ooredoo and Renaissance Services decreased by 2.45 per cent, 1.75 per cent, 1.60 per cent 1.15 per cent and 0.84 per cent respectively.
Saudi credit rating
Saudi Arabia, the world's largest oil exporter, had the outlook on its credit grade cut to negative by Standard & Poor's (S&P) while other struggling energy-producing nations had their ratings lowered.
The Saudi kingdom could lose its AA- credit ranking, the fourth-highest debt grade, in two years if its "liquid assets" decline or its fiscal position weaken, S&P said in a statement on Monday. The rating company also cut the grades of Oman, Bahrain, Kazakhstan and Venezuela by one step, citing lower oil prices.
A 50 per cent drop in oil since June is eroding government revenues of energy exporters and dimming their growth prospects. S&P said oil will average $70 a barrel by 2018, down from a forecast of $85 in December, when it lowered Saudi Arabia's outlook to stable from positive.
"Given its high dependence on oil, Saudi Arabia's currently very strong fiscal position could weaken owing to the oil price decline," analysts led by Trevor Cullinan at S&P wrote.
Saudi Arabia, which relies on oil and gas for about 90 per cent of government revenue and for 85 per cent of its exports, may face "sustained" budget deficits over the next few years as lower crude prices persist, the rating company said.
"It's worrying that a country with a solid upper investment grade credit is cut," Nicholas Spiro, a managing director at Spiro Sovereign Strategy, said by phone.
"This shows the breadth and the depth of the effect plunging oil prices are producing on both the most credit-worthy countries like Saudi Arabia and the not-so-credit-worthy Kazakhstan," he added.
Times of Oman
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