Trading hours extension to boost market liquidity

MUSCAT: The Muscat Stock Exchange (MSX) will extend its trading hours from Monday in a move aimed at enhancing market liquidity, improving price discovery and broadening opportunities for investors to execute trades.
Market analysts believe the decision will support trading activity over the medium to long term by aligning the exchange more closely with international market practices. The extended trading window is also expected to contribute to greater market depth, increased stability and stronger investor participation.
Adel Waleed, Brokerage Manager at United Securities, said the initiative would strengthen the attractiveness of the Omani capital market, particularly as the Sultanate of Oman continues to advance its privatisation programme and prepare for new listings. He noted that the move comes at a time when expectations are growing that the MSX could be considered for inclusion in emerging market indices, potentially attracting additional foreign investment.
According to Waleed, trading volumes are likely to recover during the second half of the year, supported by the anticipated listing of several companies owned by the Oman Investment Authority. These listings are expected to diversify the market's sectoral composition and draw a broader base of both retail and institutional investors.
He added that the exchange could be placed on the FTSE watch list towards the end of the third quarter, a development that would further enhance market visibility and encourage foreign investor participation.
The MSX recorded strong gains during trading sessions on Sunday and Monday, with the benchmark index rising by more than 1.8 per cent to close above the 7,750-point level. Waleed attributed the rally to increased buying by domestic investors and foreign institutions.
He also highlighted the banking sector's leading role in the market's recent recovery, following weakness in the previous week's trading. Positive contributions from other sectors helped support the broader advance, while trading volumes remained robust at more than RO 40 million. — ONA