Muscat bourse ends higher by 7% in 2016 on renewed confidence

Muscat: Oman’s Muscat Securities Market (MSM) rose 6.96 per cent, or 376.49 points, to close at 5,782.71 points in the just concluded year, predominantly due to improved confidence following a recovery in crude oil prices near the end of last year.
The Muscat bourse, which closed last year’s trading on Thursday, was the second best performing stock market in the Gulf region, after Dubai, which soared 12.06 per cent. The worst performing bourse in the GCC region was Qatar, which moved up marginally by 0.07 per cent to close at 10,436.76 points in 2016.
The average price of Oman Crude in the international market soared to $43.9 per barrel in November 2016, from as low as $27.4 per barrel in March last year, and $42.28 per barrel in January.
42 shares gain
As many as 42 shares gained, while another 50 stocks declined on the bourse in 2016, according to a review released by Al Maha Financial Services. Although the Muscat bourse has some 125 listed stocks, only 109 stocks were traded on the stock market last year.
Further, the market turnover and volume dropped, as investor participation and trading activity witnessed significant declines. The total turnover dipped by 31 per cent to OMR959 million in 2016, from OMR1,390 million for the previous year.
The average daily turnover for last year was OMR3.96 million, down by 29.3 per cent from OMR5.6 million in the previous year. Omani investors were net buyers during the year, by 9.01 per cent in terms of the value of traded securities, added the Al Maha Financial Services report. “The Muscat Securities Market’s average turnover last year was the lowest in the last eight years, at OMR3.96 million,” said Suresh Kumar, head of research at Al Maha Financial Services. He also noted that the weak sentiment due to low oil prices was reflected in the market, as investors turned cautious.
Market capitalisation
However, market capitalisation on the Muscat bourse rose by 9.56 per cent to OMR17.29 billion by end-December 2016, against OMR15.78 billion for the same period of 2015.
Major gainers on the Muscat bourse in 2016 were Packaging Co Ltd (364.3 per cent), National Gas (89.4 per cent), Al Jazeera Steel Products (80.9 per cent), Port Services Corporation (75.4 per cent) and Takaful Oman Insurance (74 per cent). Likewise, the major losers included Sembcorp Salalah (90.6 per cent), National Hospitality Institute (74.1 per cent), Al Anwar Ceramic Tiles (44.4 per cent), National Securities (42 per cent) and Financial Services (39.4 per cent).
The major companies, in terms of traded value, were Bank Muscat, Oman Telecommunications Company (Omantel), Al Anwar Holding, Bank Sohar and Oman International Development and Investment Company (Ominvest).