MUSCAT: The Muscat Stock Exchange (MSX) celebrated the inauguration of its liquidity provider service as part of the Market Making Initiative, in collaboration with the National Programme for Financial Sustainability. The CEO of the Muscat Stock Exchange, Haitham bin Salem al Salmi, explained that the aim of the service is to create liquidity for selected and agreed-upon stocks.
The Muscat Stock Exchange aims to enhance stock liquidity, ensuring that there are always stocks available for purchase and sale in the chosen securities. This service is a crucial step towards upgrading the Muscat Stock Exchange to an emerging exchange by meeting the essential requirements, with liquidity being one of the key factors.
Currently, the Muscat Stock Exchange is actively working with listed companies, especially those with significant market capitalization, to provide this service. Additionally, there are plans to establish dedicated funds to enhance liquidity in the upcoming days.
Mustafa Ahmed Salman, Chairman of the United Securities LLC, highlighted that the liquidity provider is a mechanism for stock trading. It enables the daily presentation of buying and selling offers with a spread of approximately 2% between bid and ask. This contributes to generating good trading volumes for the stocks. Furthermore, it is expected to lead to positive stock price movements, improved liquidity, attract new investors, and facilitate the listing of these stocks in global markets.
Salman emphasised the numerous advantages of the liquidity provider service and expressed hope that other companies would soon adopt and use this service. He mentioned that this service has already been successfully implemented in global markets and some regional markets, serving stock exchanges significantly. — ONA
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