• Oman

    • Muscat Stock Exchange celebrates opening of “Liquidity Provider” service

    By on January 14, 2024

    Muscat: The Muscat Stock Exchange celebrated today by ringing the opening bell of the “Liquidity Provider” service as part of the Market Making Initiative, in cooperation with the National Financial Sustainability Program, in the trading hall at the stock exchange’s headquarters.

    Haitham bin Salem Al Salmi, CEO of the Muscat Stock Exchange, explained that the “liquidity provider” service aims to create liquidity from the selected and agreed-upon stocks, noting that there are currently two agreements that have been implemented today, namely the Oman Telecommunications Company, which appointed the United Securities Company as the liquidity service provider for… Omantel shares, and Sohar International Bank, which appointed Ubar Capital as the liquidity service provider for the bank’s shares listed on the Muscat Stock Exchange.

    He said that the Muscat Stock Exchange aims, through this service, to enhance the liquidity of stocks so that there are always shares available for purchase and others for sale in the selected securities. The stock exchange also aims to reach the main requirements for upgrading the Muscat Stock Exchange to an emerging stock exchange, and one of the most important criteria for this is the availability of liquidity.

    He stated that the Muscat Stock Exchange is currently working with some listed companies, especially companies with a large market capitalization, to provide this service, in addition to the presence of special funds to provide liquidity in the coming days.

    Mustafa Ahmed Salman, Chairman of the Board of Directors of the United Securities Company, pointed out that the liquidity provider is a mechanism for stock trading, according to which offers to buy and sell shares are submitted on a daily basis at an estimated ratio of 2 percent between supply and demand, which contributes to creating a good trading volume for the stock. In the future, there will be good increases in stocks, good liquidity, and new investors, in addition to helping to list these stocks in global markets.

    He stated that there are many positives about the existence of the “Liquidity Provider” service, hoping that other companies will start using this service, noting that the “Liquidity Provider” service has been applied in global markets and some markets in the region, and it is positive and serves the stock exchanges greatly.

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