27/03/2016 07:59 AST
Unlike its peers elsewhere in the Gulf, the Muscat Securities Market staged a positive rally last week on the back of strong buying support from investors. “Renewed optimism was visible throughout the week, although some investors disengaged continued with specific buying activity”, said an analyst at a local brokerage house. On the last day of trading on Thursday, the benchmark MSM 30 Index rose 0.83 per cent to reach 5,533.58 points. MSM Sharia Index gained 1.10 per cent to close at 853.21 points. “While most bourses in the region remained subdued due to the overnight oil pull-back, the local bourse resisted pressure as investors were eying high-yield dividend stocks”,”, he said.
The financial, industrial and services indices ended the week up by 69, 27 and 14 points respectively. The MSM 30 Index market capitalisation as at the end of the day stood at RO 6.152 billion while overall market capitalisation, excluding bonds was set to exceed RO 8.477 billion. “Banking shares registered maximum buying activity. Bank Nizwa was the most active in terms of volume as well as turnover”, pointed out the analyst. Bank Niawa shares rose 6.67 on Thursday. Bank Nizwa, Global Financial Investment, Ominvest, Al Izz Bank and Bank Dhofar gained 6.67 per cent, 2.78 per cent, 2.00 per cent, 1.69 per cent and 1.11 per cent respectively.
On the same day, Moody’s placed the BAA3 adjusted baseline credit assessment of National Bank of Oman under review for downgrade, and extended the current review for downgrade on the bank’s Baa1 long-term deposit rating. Foreign investors ended the day as net sellers to an extent of RO 711,000. While Omani and GCC investors emerged as net buyers to an extent of RO 395,000 and RO 223,000 respectively. At the same time, most Gulf markets edged down following oil pull-back on Thursday. The Saudi index dropped 1.7 per cent as the petrochemical sector pulled back 1.9 per cent. Saudi Telecom tumbled 7.1 per cent and fellow telecommunications firm Mobily dropped 2.0 per cent after a Gulf Cooperation Council official said the six-nation bloc would cut roaming charges for making and receiving calls and sending text messages by an average 40 per cent from April 1.
The Dubai index fell 1.0 per cent as Air Arabia, which plunged on Tuesday as it went ex-dividend and has been weak since then in response to the Brussels airport attacks, fell a further 1.6 per cent. But Shuaa Capital, the most heavily traded stock, soared its 15 per cent daily limit in its largest volume since at least 2002. It is rebounding from a record low hit earlier this year. Abu Dhabi’s index lost 1.4 per cent as Aldar Properties, which went ex-dividend, slid 2.6 per cent. Telecommunications firm Etisalat, which could also lose from the cut in regional roaming fees, dropped 1.1 per cent. Elsewhere in the Gulf, Kuwait’s index rose 0.3 per cent to 5,268 points while Bahrain’s index edged down 0.1 per cent to 1,159 points. The Egyptian index gained 0.7 per cent in active trade, adding to its 0.9 per cent rise on Wednesday in response to a cabinet reshuffle that appeared to focus on improving economic performance.
Oman Daily Observer
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