MSX Index rises 173 points in first half of 2024
Published: 04:07 PM,Jul 06,2024 | EDITED : 07:07 PM,Jul 06,2024
Banks listed on the MSX, which form the backbone of the exchange, reported record results in the first quarter of this year.
MUSCAT: The main index of the Muscat Stock Exchange (MSX) rose by 173 points in the first half of this year, closing at 4,687 points. This increase was driven by the strong performance of public joint-stock companies listed on the exchange, their high net profits, and the enhanced performance of the national economy and the Sultanate of Oman’s improved credit rating.
Banks listed on the MSX, which form the backbone of the exchange, reported record results in the first quarter of this year. Their net profits surged by 17 per cent, rising from RO 106.300 million to RO 124.500 million, bolstering investor confidence and expectations for stable exchange performance throughout the year.
Other companies on the exchange also demonstrated robust performance. The national economy showed growth, with the gross domestic product (GDP) at current prices increasing to RO 10.400 billion in the first quarter, marking a rise of approximately 1 per cent compared to the same period last year.
The MSX main index peaked in trading on May 30, reaching 4,845 points, its highest level in 14 months. However, it failed to sustain this level, experiencing a series of declines that brought it below 4,600 points in trading on June 25.
Several leading stocks in the banking, communications, and energy sectors exerted downward pressure on the main index in June, resulting in a 158-point decline and reducing the gains made since the beginning of the year. June also saw a decline in trading value, which fell to RO 42.000 million from approximately RO 93.700 million in May 2024. The number of executed deals decreased from around 17,000 to 12,733, the lowest monthly tally in the first half of this year.
Despite the June downturn, the main index recorded solid performance in previous months. It rose by 148 points in April, marking the best monthly performance of the year, increased by 80 points in March, by 61 points in May, and by 47 points in January, while it fell by 7 points in February.
The trading value in the first half of this year increased to RO 559.100 million, compared to RO 426.300 million in the same period last year, recording an increase of 31.1 per cent. The number of traded securities more than doubled, rising from 1.5 billion to 3.3 billion. The number of executed transactions increased from about 78,000 to over 119,000. February saw the highest trade value at approximately RO 129.800 million, followed by April with RO 119.000 million, and May with RO 93.700 million.
In the first half of this year, the market value of the MSX gained RO 478.200 million, rising by the end of June to RO 24.280 billion. Public joint-stock companies accounted for 37.9 per cent of the total market value, which increased to RO 9.211 billion by the end of June, recording gains of RO 243.400 million compared to RO 8.967 billion at the end of last year.
The first half of this year also saw Al Batinah Hotels Company transform from a public joint-stock company to a closed joint-stock company with capital of RO 2.074 million. Al Madina Investment Holding Company announced new steps towards its transformation into a closed joint-stock company by November 2023, including appointing an audit office to evaluate the company and determine the fair value of the shares, which was set at 60 baisas. The company will discuss this transformation at an extraordinary general assembly meeting after completing the necessary procedures.
Meanwhile, Al Hassan Engineering Company announced that its shareholders approved a proposal to voluntarily dissolve and liquidate the company at an extraordinary general assembly meeting on 21 May. This decision follows the complete erosion of the company’s capital, with financial statements indicating accumulated losses exceeding RO 77.000 million as of the end of March, while the company's capital stood at RO 7.500 million. — ONA
Banks listed on the MSX, which form the backbone of the exchange, reported record results in the first quarter of this year. Their net profits surged by 17 per cent, rising from RO 106.300 million to RO 124.500 million, bolstering investor confidence and expectations for stable exchange performance throughout the year.
Other companies on the exchange also demonstrated robust performance. The national economy showed growth, with the gross domestic product (GDP) at current prices increasing to RO 10.400 billion in the first quarter, marking a rise of approximately 1 per cent compared to the same period last year.
The MSX main index peaked in trading on May 30, reaching 4,845 points, its highest level in 14 months. However, it failed to sustain this level, experiencing a series of declines that brought it below 4,600 points in trading on June 25.
Several leading stocks in the banking, communications, and energy sectors exerted downward pressure on the main index in June, resulting in a 158-point decline and reducing the gains made since the beginning of the year. June also saw a decline in trading value, which fell to RO 42.000 million from approximately RO 93.700 million in May 2024. The number of executed deals decreased from around 17,000 to 12,733, the lowest monthly tally in the first half of this year.
Despite the June downturn, the main index recorded solid performance in previous months. It rose by 148 points in April, marking the best monthly performance of the year, increased by 80 points in March, by 61 points in May, and by 47 points in January, while it fell by 7 points in February.
The trading value in the first half of this year increased to RO 559.100 million, compared to RO 426.300 million in the same period last year, recording an increase of 31.1 per cent. The number of traded securities more than doubled, rising from 1.5 billion to 3.3 billion. The number of executed transactions increased from about 78,000 to over 119,000. February saw the highest trade value at approximately RO 129.800 million, followed by April with RO 119.000 million, and May with RO 93.700 million.
In the first half of this year, the market value of the MSX gained RO 478.200 million, rising by the end of June to RO 24.280 billion. Public joint-stock companies accounted for 37.9 per cent of the total market value, which increased to RO 9.211 billion by the end of June, recording gains of RO 243.400 million compared to RO 8.967 billion at the end of last year.
The first half of this year also saw Al Batinah Hotels Company transform from a public joint-stock company to a closed joint-stock company with capital of RO 2.074 million. Al Madina Investment Holding Company announced new steps towards its transformation into a closed joint-stock company by November 2023, including appointing an audit office to evaluate the company and determine the fair value of the shares, which was set at 60 baisas. The company will discuss this transformation at an extraordinary general assembly meeting after completing the necessary procedures.
Meanwhile, Al Hassan Engineering Company announced that its shareholders approved a proposal to voluntarily dissolve and liquidate the company at an extraordinary general assembly meeting on 21 May. This decision follows the complete erosion of the company’s capital, with financial statements indicating accumulated losses exceeding RO 77.000 million as of the end of March, while the company's capital stood at RO 7.500 million. — ONA