News Column

Muscat Securities Market Index closes flat

July 2, 2014

United Securities/Bloomberg News

Muscat: The MSM 30 index ended on a flat note at 7024.77 points, up by 0.06 per cent. MSM Shariah Index also closed up at 1053.88 points, a marginal rise by 0.07 per cent.

Al Suwadi Power was the most active in terms of volume, while Omantel was the most active in terms of turnover. Al Madina Takaful was the top gainer showing 6.78 per cent rise. National Aluminium was the top loser and closed down by 1.51 per cent.

Altogether 1,547 trades were executed in Wednesday's session generating a turnover of OMR5.73 million with over 21.50 million shares traded. Out of 44 traded stocks, 18 advanced, 8 declined and 18 were unchanged. At the session close, GCC & Arab investors were net buyers to the tune of OMR464,000 worth of share  followed by Omani investors at OMR 377,000. Foreign investors sold shares amounting to OMR841,000.

Financial Sector Index was marginally up by 0.53 per cent at 8612.81 points. Al Madina Takaful, DBIH, Al Madina Investment and HSBC Bank increased by 6.78 per cent, 2.96 per cent, 2.83 per cent and 2.45 per cent respectively. Bank Muscat, Bank Sohar and Oman United Insurance declined by 1.17 per cent, 0.75 per cent and 0.51 per cent respectively.

The Industrial Sector Index was up by 0.12 per cent at 10113.30 points. Oman Fisheries and Galfar Engineering increased by 3.41 per cent and 1.19 per cent respectively.

National Aluminium, Gulf International Chemicals and Oman Chlorine declined by 1.51 per cent, 0.83 per cent and 0.34 per cent respectively.

Services Sector Index was marginally up by 0.01 per cent at 3609.40 points. National Gas, Renaissance Services and Al Batinah Power increased by 1.01 per cent, 0.65 per cent and 0.59 per cent respectively. OIFC and Omantel declined by 0.37 per cent and 0.30 per cent respectively.

Dubai stocks gain

Dubai shares rose the most in the world amid growing speculation the selloff that wiped off almost a quarter of the benchmark index's value has run its course.

The DFM General Index advanced a second day, jumping 7.9 per cent, the most since September 10, to 4,389.94 at the close in the emirate. It's the best performer among more than 90 gauges so far on Wednesday. Arabtec, the United Arab Emirates' biggest listed builder, advanced 15 per cent, the most since April 2012. Emaar added 5.1 per cent.

"The selling has started to look like it is capitulating," Akber Naqvi, an executive director at Dubai- based Al Masah Capital, which manages $545 million, said in e-mailed comments. "The market is at attractive levels and needs consolidation and sideways movement to confirm the bottom, but buyers seem to be more assertive at these levels."

The UAE Securities & Commodities Authority is investigating market volatility in June after Dubai's index entered a bear market last week, it said yesterday. The regulator will take "suitable legal action" and put in place "preventive measures" following the probe.

The index slid 22 per cent in June, the biggest monthly drop since November 2008. Abu Dhabi's ADX General Index declined 13 per cent during the period.

Arabtec was at the heart of Dubai's selloff last month, as Aabar Investments, the company's second-biggest shareholder, cut its stake, the chief executive officer resigned and the builder dismissed staff. Arabtec shares climbed to Dh3.31. Emaar's advanced to Dh9.35, the highest close since June 19.

Aabar is now studying whether to rebuild its holding in Arabtec, Khadem Al Qubaisi, who is chairman of both companies, said at a press conference on Wednesday.

The UAE's central bank on June 8 warned that the country's real estate market may be overheating, spurring the index's first quarterly retreat since the three months ended June 2012. The gauge's 14-day relative-strength index rose to 47 today from a low of about 28 on June 24. A reading below 30 indicates to some technical analysts that an asset is oversold and poised to reverse.

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Source: Times of Oman

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