Financial stocks lift Muscat Stock Exchange for third week

MUSCAT: The financial sector continued to underpin trading on the Muscat Stock Exchange (MSX), with the sector index extending its gains for a third consecutive week as investors increased positions in banking, insurance and investment stocks.
The financial sector index rose by 98 points last week, building on gains of nearly 300 points recorded over the previous two weeks. The index closed at 13,034 points, supported by advances in shares of Bank International, Oman Arab Bank, ahli bank, Bank Nizwa, Al Sharqiyah Investment Holding, Ominvest, Al Madina Takaful and United Finance.
Despite the strength in financial stocks, the broader market ended lower. The benchmark MSX index shed 23 points to close at 7,634 points, while the industrial index declined 83 points and the services index lost 37 points. The Sharia Index slipped by one point to finish the week at 611 points.
Market capitalisation fell by RO 86 million to RO 36.66 billion as declining stocks outnumbered gainers. A total of 55 securities ended lower, compared with 21 gainers, while 14 stocks remained unchanged.
Trading activity, however, strengthened significantly. Total trading value rose 9.3 per cent to RO 191.4 million from around RO 175 million in the previous week, while the number of executed transactions jumped 65 per cent to approximately 41,700 deals.
Investors focused on major stocks including OQ Base Industries, OQ Gas Networks, Bank International, Asyad Shipping and Bank Muscat. Bank Muscat topped the list of most actively traded shares by value at RO 46 million, accounting for 24 per cent of total turnover. It was followed by Bank International at RO 33.7 million, OQ Base Industries at RO 32.5 million, OQ Exploration and Production at RO 18.1 million and OQ Gas Networks at RO 17.5 million.
Among the week’s best performers, Oman Arab Bank advanced 6.7 per cent to 238 baisas, while Al Maha Ceramics gained 4.7 per cent to 263 baisas. Al Sharqiyah Investment rose 3.9 per cent, ahlibank added 3 per cent and OQ Exploration and Production increased 2.8 per cent to close at 470 baisas.
On the downside, Salalah Port Services led the decliners, falling nearly 19 per cent to 462 baisas. Salalah Mills dropped 16.5 per cent to 560 baisas, while Al Hassan Engineering, currently under liquidation, lost 12.5 per cent to close at 7 baisas.
Meanwhile, Al Anwar Investments announced that its board has recommended a cash dividend of 5 baisas per share and a bonus issue of three shares for every 100 shares held. The proposal will be submitted for shareholder approval at the company’s annual general meeting on June 30.
The company reported a net profit of RO 765,000 for the financial year ended March 31, compared with RO 2.3 million a year earlier. Its share price closed the week at 169 baisas. — ONA