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MSX buoyed by upgrade of Oman’s sovereign rating

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The MSX Index gained 52 points to close at 4,607.250 on Sunday, November 27, 2022 – an increase of 1.140 per cent – in response to the latest upgrade in the Sultanate of Oman’s credit rating announced by leading international rating agency S&P over the weekend.

A total of 408 trades were recorded, generating a turnover of RO 4.273 million with more than 17.367 million shares changing hands during the day. The rally was led by the Financial Sector and higher index weighted shares, said an Omani securities analyst.

“We expect the positive sentiment of the upgrade of the sovereign rating to have its positive effects on the market for few days on better volume and positive performance on the overall market sectors,” said Amor Ahmad, Ahli Bank.

On Saturday, S&P announced an upgrade of Oman’s sovereign credit rating from “BB-” to “BB” with a stable outlook. It was the second such upgrade by New York City headquartered institution of Oman’s economic outlook. S&P credited improvements in Oman’s balance of payments, crediting various financial measures adopted by the government within the framework of the Medium-Term Fiscal Plan (MTFP), coupled with the rise in international oil prices.

According to S&P, Oman’s financial performance further improved during the current year. It cited the significant efforts made by the government to reduce public debt which is projected to decline to 44 per cent of GDP in 2022, down from 61 per cent in 2021.

Meanwhile, the total market value of the MSX increased by the end of last week to RO 23.405 billion, recording weekly gains of about RO 410 million. Contributing to this growth were new listings and an increase in the prices of many shares listed on the stock exchange.

Last week, the MSX listed Bank Muscat's perpetual bonds Tier 1 at a value of RO 375.3 million, as well as the the subordinated, unsecured, non-convertible bonds issued by Taageer Finance, valued at RO 14.6 million.

The total value of the bonds and sukuk rose with the new listings to RO 4.837 billion, recording weekly gains of RO 298.3 million. Closed joint stock companies also supported the total market value after recording weekly gains of RO 63.6 million, effectively lifting the total value of the segment to RO 10.378 billion.

Last week, public joint-stock companies recorded gains in their market value of about 47.5 million Omani riyals, after rising at the end of last week is trading to RO 8.188 billion.

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