Muscat, Feb 6 (ONA) — At the end of January 2016, Muscat Securities Market index (MSM30) reduced the losses it had at the first three weeks of the year to close above 5000 points despite the fact that it closed at 4867 points on 21st January, a record-low since April 2009.
The index slumped in January by 4.2% to close at 5179 points; a decline by 226 points in a slump wave that affected all world and GCC stock markets. While improvement in oil prices at the last week of January helped stock markets’ indices to climb again, still it was not enough to make off the previous losses.
The oil prices slumped sharply last January to touch USD 22 per barrel. The expectations about the lack of oil supplies augmented prices to record about USD 30 per barrel by the end of the month.
The sectoral indexes decreased with varying degrees with the biggest decline by the service sector, which slumped by 5%. The Sharia market index decline by 4.5% compared to 3.5% for industry index and 2.1% for the financial sector index.
Many stocks reached their record lows during the year and were even close to their nominal value. The situation made the price attractive for the investment companies and funds, which regarded this as a good way to augment their portfolios after the losses they have incurred over the past period.
The purchases of the local establishments of the total trading were more than 60.3% compared to 49.1% of the sales. The GCC institutions purchases to the total purchases were 10% compared to more than 28% of the sales transactions.
During January 2016, the price of 40 stocks went down, 13 companies went up and 23 companies remained unchanged. The biggest gains at MSM was Al Jazeera Steel, which closed at 157 baises, a 15.4% increase. Followed by Bank Dhofar share, which increased by 11.6% to close at 239 baises. Takaful Oman Insurance share came third on the top gainer list and increased by 11% to close at 111 baises.
Renaissance Services share topped the losers’ list as it declined by 22% to close at 127 baises, very close to its nominal value, which is 100 baises.
Galfar Engineering share declined by 20% to close at 56 baises; below its nominal value. Al Jazeera Services share slumped by 19.8% to close at 250 baises.
The value of trading in January 2016 stood at RO 78.2 million; a decline by 54% compared to its level in December 2015, which was at RO 173.1 million.
Darca Holding Company purchased 14.7 million shares of Oman Cables Company at a price of RO 3 per share and a total of RO 44.1 million. The transaction increased Darca stake at Oman Cables Company from 34.7% to 51%.
Bank Muscat share topped the list of trading with RO 16.8 million shares or 21.4% of the trading volume, followed by Omantel with RO 9.4 million worth shares or 12% of the trading and Anwar Holding Company with RO 7.1 million worth shares or 9.1% of the trading.
During the past month, MSM capitalization slumped to RO 15.546 billion incurring about RO 231.9 million losses.
— Ends/MS/KH
