MSM continues its winning streak

29/03/2016 07:44 AST

Despite relatively weak global and regional sentiments, the Muscat Securities Market continued to be on a winning streak for the ninth consecutive day of trading yesterday. The MSM30 Index rose to 5,545.880 points with a gain of 0.17 per cent mainly driven by recovery in oil prices along with dividend related buying interest.

“The benchmark local index has one of its strongest and longest periods of gains in the recent times”, said Suresh Kumar, Research Head at Al Maha Financial Services.

The market volume witnessed a substantial rise with 14 million shares on March 15 to above 30 million to reach 35 million yesterday on the back of broad-based buying support. “This is mainly because of the positive sentiment arising out of the recent crude oil recovery and the ongoing dividend payments going forward by companies”, said Suresh.

At the same time, he also said that the local bourse may look at the announcements of first quarter numbers to be made from next month.

“Outcome from the expected Doha meeting of Organisation of the Petroleum Exporting Countries is also expected to have say on the bourse’, he said.

Oil prices have risen about 50 per cent from multi-year lows hit in January on glut worries. Declining US oil output and strong US gasoline demand have also supported oil prices. All the sectorial indices made gains yesterday despite the stocks traded sideways.

While the financial index appreciated by .37 per cent to reach 7029.34 per cent, industrial and services gained .52 per cent and .12 per cent respectively.

While Bank Nizwa was the most active in terms of volume and one of the losers, Galfar Engineering, Bank Muscat, Al Anwar Holding and United Finance made significant gains yesterday.

Oman Investment and Finance also gained on the back of the approval given by the Central Bank of Oman to the application of its subsidiary Wasel Exchange SAOC to take over the operations of Musandam Exchange.

Meanwhile, in the region most bourses continued to witness a mixed trend. The Dubai index edged down to a low of 3,267 points in the opening minutes, near chart support on its mid-March low of 3,253 points, but after an hour of trade was 0.4 per cent higher at 3,294 points. Abu Dhabi edged down 0.3 per cent as telecommunications firm Etisalat fell 0.8 per cent.

Oman Daily Observer