MSM retains positive rally
MUSCAT -- The Muscat Securities Market continued the positive rally for the consecutive second day yesterday with the MSM30 index closing up by 0.69 points. The local bourse which staged a comeback on Wednesday after losing continuously for two weeks made the gains, mainly thanks to positive earning results pouring in from the listed companies. "Most other markets in the region, mainly those in the Gulf countries, were gainers over the past couple of days. This is because of an expected improvement in corporate performance in the second quarter and easing of monetary tension in the euro zone," said an analyst at a brokerage firm.
In yesterday's trading Bank Nizwa was the most active in terms of volume while bank muscat was the most active in terms of turnover. Oman Sweets was the top gainer for the day and closed up by 7.90 per cent, while Oman Hotels was the top loser for the day and was down by 10 per cent. Industrial Sector Index led the sectoral lead with a gain of 1.14 per cent. It closed at 6,662.74 points. Sweets of Oman, Oman Flour Mills, Raysut Cement, National Aluminium Products and Oman Textile Holding increased by 6.23 per cent, 5.38 per cent, 2.62 per cent, 2.49 per cent and 2 per cent respectively. Construction Material industries and Voltamp Energy declined by 1.89 per cent and 0.42 per cent respectively.
Financial Sector Index was up by 0.89 per cent and closed at 6094.34 points, Global Financial Investment, Oman & Emirates, Gulf Investment, bank muscat and Bank Nizwa increased by 3.41 per cent, 2.75 per cent, 2.70 per cent, 1.92 per cent and 1.89 per cent respectively. United Insurance was the only loser in the sector and was down by 0.65 per cent to close at RO 0.153. Services Sector Index was up by 0.08 per cent to close at 2,601.88 points. OIFC, Oman Telecom and Renaissance Services increased by 1.21 per cent, 0.67 per cent and 0.23 per cent respectively. Oman Hotels, Nawras and Al Jazeira Services declined by 10.00 per cent, 0.42 per cent and 0.36 per cent respectively.
A total number of 1,588 trades were executed in today's trading session generating turnover of RO 6.66 million with over 21.78 million shares changing hands, of which RO 2.16 million volumes came from Government Bond trading. Of the 50 traded stocks, 26 advanced, 6 declined, and 18 remained unchanged. At the session close, foreign investors were net buyers for RO 1.01 million while Omani investors were net sellers for RO 890,000 followed by GCC and Arab investors for RO 125,000 worth of shares. Meanwhile, the global stocks and the euro tumbled yesterday after the European Central Bank disappointed investors who were hoping for immediate action to combat the euro zone debt crisis.
The ECB signalled plans to push down borrowing costs for euro zone countries through upcoming bond purchases, though the move is likely weeks away. The ECB, which said it would wait to see if the euro zone economy slows further before cutting interest rates, pledged last week it would do what it takes to support the euro. Asian markets too were closed mixed in tentative trade ahead of a meeting of the European Central Bank.