MSX Index climbs 10pc in July

The main index of the Muscat Stock Exchange rose to 4,532 points, its best level since October 2018 after being supported by bank shares and several leading companies listed in the price index sample.

Last month, the stock market's main index rose 409 points, or about 10 per cent, from its level at the end of June, marking its highest monthly rise this year.

All sectoral indicators were up, with the exception of the industry index, which fell about 52 points and closed at 5,707 points, while the financial sector index recorded a high of 660 points and closed at 7,275 points, up about 10 per cent.

The rise, supported by banks and investment companies, which announced positive developments last month, came as they recorded an upturn in their profits and financial results, the services sector index rose 91 points and closed at 1,658 points, and the legitimate index climbed about 14 points and closed at 466 points.

Meanwhile, the combined net profit of MSX-listed companies grew by about 6 per cent YoY during 1H22 to about RO 370.4 million. On a sector-wise basis, the Financial Sector showed a YoY growth of about 7 per cent while the Services Sector posted an 11 per cent YoY growth in combined net profits of the companies compared to 1H21 and supported the combined net profit of the stock market.

The Industrial sector, however, saw a drop of 28 per cent YoY in its combined net profit, largely due to a significant drop in combined profits of Food & Beverage sub-sector (-39 per cent YoY) and the Engineering & Construction sub-sectors.

The largest improvement in combined net profits within the Financial Sector was witnessed by the Banking sub-sector (+10 per cent YoY or RO 17.8 million).

The banking and leasing sub-sectors saw continued recovery in their combined net profits on the back of lower provision expenses this year as compared to last year, further supported by rise in operating income of most banks.

The Investment & Brokerage sub-sector also contributed positively to sector profits. The insurance sub-sector, however, continues to remain under pressure.