Muscat bourse gains in the first quarter

Muscat: Muscat bourse rose 61 points in the first quarter of 2016, benefiting from gains in February and March, which made it rising again after severe losses recorded in January.
The MSM 30 Index recorded a better performance in the first quarter of 2016 compared to that achieved in the corresponding period of last year during which it lost 105 points. The index closed at the end of March with 5,467 points.
Despite the gains, the main index is still below its level at the end of March 2015 at 6,238 points. MSM suffered a fall of 937 points last year mainly due to the influence of regional and global stock markets amid a slump in oil price and the decline in global economic growth.
However, the rise in oil prices since the end of February and the dividends announced by the companies and financial results achieved in 2015 brought optimism to investors reflected on a significant rise of shares.
During the first quarter of 2016, MSM main index hit its lowest level in seven years when it fell below the level of 5,000 points for the first time since 2009 to close by the end January 21 at 4,867 points, the lowest level recorded since April 2009. This was caused by a fall in oil prices to the level of $20 a barrel. But the rise of oil prices on one hand and the financial results announced by the listed companies on the other hand supported price levels, thus pushing significantly the prices of shares and the index.
The total trading volume in the first quarter of 2016 amounted to OMR263.7 compared to OMR411.3 million for the same period last year.
Bank Muscat topped the most actively traded companies with OMR47.9 million, accounting for 18 percent of trading, followed by Oman Telecommunications Company with OMR25.3 million.
The market capitalisation of listed firms on the market rose at the end of March 2016 to OMR16,436.0 million, up by OMR657.3 million from its level at the end of last year. This growth was attributed to listing of new shares, most notably the inclusion of shares of the increase in the capital of Oman Oil Refineries and Petroleum Industries (Orpic) amounting to OMR509.5 million in the third market, and the inclusion of government development bonds worth OMR100 million in the bonds and sukuk market, as well as increased capitals of several public shareholding companies and joint stock companies. – ONA