Muscat Stock Exchange Records Strong Weekly Gains

Dividend Announcements Boost Trading Activity on MSX

Muscat:  Local investment funds and institutions increased their activity on the Muscat Stock Exchange (MSX) last week, injecting additional liquidity amid growing optimism following the disclosure of financial results and dividend recommendations by public shareholding companies.

Banks and several listed companies announced dividend proposals during the week. Oman Cables Industry recommended a cash dividend of 95.5 baisa per share, while Gulf Mushroom Production proposed a 25-baisa cash dividend in addition to a 10 percent bonus share distribution.

Most banks also disclosed their dividend recommendations. Bank Muscat proposed a cash dividend of 18 baisa per share, National Bank of Oman 10.5 baisa, Bank Dhofar 7.5 baisa, and Bank Nizwa 2.7 baisa per share, in addition to issuing mandatory convertible sukuk representing 4.54 percent of paid-up capital. Ahli Bank and Bank Sohar International opted to distribute a combination of cash dividends and bonds. These recommendations will be presented to shareholders at Annual General Meetings scheduled for next March.

Trading value on the MSX rose sharply to RO 235.1 million last week, compared to RO 130.1 million in the previous week, marking an increase of about 80 percent. The number of executed transactions increased by 24.7 percent, rising from around 20,000 to more than 25,000 transactions.

Trading data issued by the Muscat Stock Exchange showed that purchases by local investment institutions amounted to RO 170.7 million, representing 72.6 percent of total trading value, compared to sales of RO 146.5 million, or 62.3 percent of the total value. In contrast, local individual investors tended to sell to capitalize on gains achieved in recent months, with their sales accounting for 17.5 percent of total trading value, compared to purchases of 14.4 percent.

The Muscat Stock Exchange recorded gains across most indices last week. The main index rose by 116 points to close at 6,330 points. The industrial sector index posted the highest increase, rising 263 points, supported by gains in shares of Voltamp Energy, Al Jazeera Steel Products, Oman Chrome, and other industrial companies. The financial sector index climbed 149 points, while the services sector index rose 17 points. The Sharia index increased by 6 points to close at 589 points.

Market capitalization rose to RO 33.5 billion by the end of last week’s trading, recording weekly gains of RO 247.9 million.

Bank Muscat topped the list of most actively traded companies by value, with trades worth RO 48.1 million, accounting for 20.4 percent of total trading value. Omantel ranked second with RO 32.1 million, followed by Bank Sohar International with RO 30.9 million, OQ Exploration and Production with RO 29.9 million, and OQ Basic Industries with RO 21.8 million.

During the week, prices of 48 securities rose, compared to 31 securities that declined, while 20 securities remained unchanged. Gulfar Engineering and Contracting led the gainers, rising by 25 percent to close at 105 baisa. Voltamp Energy followed with a gain of 17.6 percent, closing at RO 1.700, while National Finance rose by nearly 14 percent to close at 204 baisa.

Majan Glass recorded the steepest decline, falling by 29.4 percent to close at 12 baisa. Shares of Gulf Hotels (Oman) declined by 10 percent to RO 3.555, while Al Anwar Ceramic Tiles fell by 6.4 percent to close at 188 baisa.