MUSCAT: Share prices on the Muscat Securities Market (MSM) staged a major recovery on Sunday, with the general index climbing by 3.25 per cent or 162.85 points to close at 5,179.36 points.
“The main reason for the market recovery was a surge in the crude oil prices, which recovered by almost 25 per cent from $26 a barrel to $34 per barrel last week,” said Suresh Kumar, head of research at Al Maha Financial Services.
The market continued its rebound journey, as a result of which investors gained OMR203 million (notionally) in terms of market capitalisation, mainly due to better investor sentiment. “There has been a broad-based buying in the last three to four trading sessions and the frontrunners were blue chip stocks or bank shares,” added Suresh Kumar.
The market is recovering after the bourse touched a seven-year low on January 17 in the aftermath of a steep fall in crude oil prices, and started to recover in the following week. The bourse is still lower by 4.19 per cent or 226.67 points, when compared to its last year close of 5,406.22 points.
The blue chip stocks (especially bank shares) are available at attractive valuations, which attracted buying support from both local and foreign investors. “Also, dividend announcements of banks last week were in line with market expectations,” noted Suresh Kumar.
Bank stocks, which touched recent lows, led the market rally. The traded volumes on the local market also recovered. Market turnover on Sunday at OMR7.15 million (on a volume of 37.9 million shares) was almost double, when compared to the average daily volume in the previous weeks.
The major gainers on the Muscat bourse on Sunday were Al Madina Investment, Bank Sohar, Takaful Oman Insurance, United Finance, Al Jazeera Services and Al Anwar Holding. The trend on the local bourse in the coming days will largely depend on the recovery in crude oil prices, said another market source. Recent indications of Opec and Russia to discuss output cut are likely to prop up the market sentiment in GCC region.
Like the Omani bourse, stocks across the Gulf also surged aheadon oil price recovery. Other regional bourses recovered substantially, with Dubai leading the recovery with over 4.92 per cent gain, followed by Abu Dhabi (3.68 per cent), Qatar (2.26 per cent), Kuwait (2.08 per cent), Saudi (1.98 per cent) and Bahrain (1.32 per cent).
