Muscat Stock Exchange Index Rebounds on Investor Demand and Strong Corporate Earnings

The main index of the Muscat Stock Exchange resumed its rise during the week, increasing by about 160 points to close at 7277 points. The rebound benefited from demand from individual investors and increased purchases by local and Gulf investment funds and institutions. Investor confidence was boosted after financial results for the first half of this year showed an increase in company profits and an improvement in their financial results. Investors sought to increase purchases after declines witnessed by stocks during past weeks, positive disclosures by publicly listed companies, and optimistic expectations regarding financial results for this year.

Market Performance Overview

Sectoral indices collectively recorded a rise, with the financial sector index marking the highest gains at 257 points. The industrial sector index advanced by more than 100 points, while the services sector index increased by 49 points. The Sharia index also climbed, rising 6 points to reach 578. During the week, the prices of 45 securities rose, contrasting with 25 securities that experienced price declines. By the close of trading on Thursday, the market capitalisation of the Muscat Stock Exchange had risen to OMR37.58 billion. This figure reflects weekly gains estimated at OMR412 million for the Muscat Stock Exchange.

Investor Activity and Trading Dynamics

Trading value during the week saw a 40 percent increase, exceeding OMR255 million, compared to approximately OMR182.7 million in the previous week. The number of executed transactions also rose by 15.8 percent, increasing from 39,000 to more than 46,000 transactions.

Individual Omani investors were responsible for 19.3 percent of the total trading value in purchases and 16.7 percent in sales. Gulf investment institutions contributed about 7.5 percent of the total trading value in purchases and 4.5 percent in sales. Local investment funds and institutions actively diversified their investment portfolios during this period.

Top Traded Companies and Securities

OQ Basic Industries topped the list of most traded companies in terms of trading value, witnessing trades worth OMR55.4 million. This figure represented 21.6 percent of the total trading value on the Muscat Stock Exchange. Bank Muscat ranked second with trades amounting to OMR45.7 million, while Bank Sohar International secured the third position with OMR33.4 million in trades. Omantel followed with trades worth OMR25.9 million. OQ Gas Networks came in fifth, recording trades valued at OMR25.7 million, which constituted 10 percent of the total trading value.

Among individual securities, Oman and Emirates Investment Holding Company's stock led the winning stocks, rising by 16 percent to close at 130 baisa. Al Batinah Power Company's stock also saw a significant increase, rising by 13.7 percent to 182 baisa. Similarly, Al Suwadi Power Company's stock advanced by 13.7 percent, closing at 182 baisa. Conversely, SMN Power Holding shares led the losing stocks, declining by 5.4 percent to close at 191 baisa.

Bonds, Sukuk, and Outlook

Shares of Al Sharqiyah Desalination fell by 5.2 percent, closing at 161 baisa. Takaful Oman Insurance shares also declined by 4.6 percent, reaching 62 baisa. Conversely, the bonds and sukuk market showed positive movement, with no declines recorded across its instruments.

Oman Arab Bank’s mandatory conversion bonds 2024 saw a significant increase, rising by 27 percent to close at OMR1.906. Ahli Bank’s bonds 2025 also performed well, climbing by 12.5 percent to 135 baisa. Ominvest’s perpetual bonds 2023 recorded an increase of 4.7 percent, reaching 875 baisa. The trading value in the bonds and sukuk market reached OMR255,000 during the period.