Muscat Stock Exchange Recovers, Main Index Surges 210 Points

The Muscat Stock Exchange's main index surged by 210 points during the past week, recovering from previous losses. This significant rise marked a positive turnaround for the market. The index had declined by 177 points a week earlier, but this recent performance reversed that trend, indicating a strong recovery. The main index concluded the week's trading at 8,369 points, reflecting the renewed investor confidence.

Sectoral Performance and Market Breadth

All major sectoral indices recorded gains, contributing to the overall market upswing. The financial sector index increased by 210 points, demonstrating strong performance within this key segment. The industrial sector index registered a rise of 123 points, noting growth in manufacturing and related industries. The services sector index also advanced, climbing by 84 points, indicating positive momentum across service-oriented businesses. Additionally, the Sharia index recorded a gain of 10 points, closing the week at 656 points. Market breadth indicated broad positive movement, with the prices of 56 securities rising. This widespread increase showed the positive sentiment. In contrast, 22 securities experienced price declines, and 21 securities concluded the trading week unchanged, showing that the positive performance was broad-based across a majority of listed companies.

Market Capitalisation and Trading Activity

The market capitalisation of securities listed on the stock exchange increased by OMR351.3 million during the week. This substantial growth in market value reflected the gains made by various companies. Total market capitalisation reached OMR38.43 billion by the close of trading on Thursday, marking a healthy expansion. Trading value also saw a significant rise, increasing by 25 percent to OMR370.1 million over the week. This figure compares to OMR294.5 million in the preceding week, illustrating a noticeable uptick in investment activity. The number of executed transactions demonstrated growth, rising by 8.6 percent. Transaction volume expanded from approximately 25,000 to more than 27,000 transactions, indicating increased market activity and liquidity. This surge in trading volume and value suggests heightened investor engagement and confidence in the market's trajectory.

Top Traded Companies and Gainers

Bank Sohar International led the list of most traded companies by value, with trades totaling OMR79.2 million. This figure represented 21.4 percent of the total trading value for the week, showing its prominence in market activity. OQ Basic Industries followed, recording OMR75.2 million in trades, securing its position as the second most active stock. Bank Muscat ranked third with OMR53.8 million in trading value, further noting the strong performance of the banking sector. Among individual stocks, Fincorp's shares registered the highest gains, increasing by 37.7 percent to close at 124 baisa. Fincorp reported net profits of approximately OMR29,000 in the first quarter of this year, a remarkable reversal from losses of about OMR217,000 during the same period last year. This turnaround likely fueled investor interest. Muscat Insurance shares also saw significant appreciation, rising 32 percent to close at 820 baisa. Dhofar Insurance shares climbed 20.4 percent to reach 371 baisa. Oman Fisheries shares recorded gains of 16 percent, closing at 29 baisa, and Salalah Mills shares rose 14 percent to 650 baisa, adding to the list of top performers.

Notable Decliners and New Listings

While the market largely saw gains, some sectors and individual stocks experienced declines. The building materials sector led decliners, falling 5 percent to close at 76 baisa, indicating some headwinds for companies within this industry. The National Oman Engineering and Investment Company's stock fell 3.7 percent, ending the week at 154 baisa. Arab Falcon Insurance Company's stock dropped 3.5 percent to close at 135 baisa. Barka Water and Power Company's stock also declined, falling 3.3 percent to 172 baisa. Salalah Port Services Company's stock recorded a decline of 2.6 percent, closing at 600 baisa. On the bonds and sukuk market, the 83rd issue of government development bonds (GDBs) was listed. The value of these listed government development bonds was OMR100 million, carrying an annual interest rate of 4.2 percent. This listing marks the fourth issue of government development bonds on the Muscat Stock Exchange this year, providing additional investment opportunities for market participants.