Oman- MSM30 index gains on support from NBO

11/1/2015 12:48:07 PM

(MENAFN- Muscat Daily) Muscat-

The MSM30 index started the new week with a bang posting a 0.34 per cent gain to close at 5948.14 mainly supported by National Bank of Oman (NBO).

Trading activity was weak as market volume and turnover dropped 51.95 per cent and 38.27 per cent respectively. Market breadth was also negative as 12 stocks slipped against three gainers while 19 securities remained unchanged.

The Financial gauge was the only survivor among the sub-indexes gaining 0.24 per cent to 7316.21. The Industrial and Service gauges posted moderate declines. The MSM Shariah index closed down 0.08 per cent at 911.85.

NBO (+7.33 per cent) SMN Power Holding (+1.06 per cent) and National Aluminium Products (+0.87 per cent) were the only gainers on the day. Bank Nizwa (-2.5 per cent) and Al Anwar Holdings (-2.15) were amongst the top laggards.

Among regional markets Dubai's stocks sank to the lowest level in more than two months on concern that Saudi Arabia's debt downgrade will drive up borrowing costs across the region.

The DFM general index dropped 2.1 per cent to close at 3430.93 the lowest level since August 24. Saudi Arabia's Tadawul all share index lost 1.5 per cent in Riyadh.

Brent crude gained 1.6 per cent on Friday to US$49.56 a barrel paring its decline in the past 12 months to 42 per cent.

Trading volumes in Dubai remain depressed. About 183mn shares changed hands on Sunday compared with a one-year daily average of more than 422mn. Sunday was the first time that a rights issue has traded on Dubai's exchange. Takaful Emarat Insurance PSC plans to raise AED50mn initially from the sale of new shares.

Abu Dhabi's ADX general index fell 0.5 per cent and Qatar's gauge slipped 0.2 per cent. Bahrain's all share index and Kuwait's measure both rose 0.1 per cent.

"We see more bad news coming with the recent downgrade of Saudi Arabia" said Tariq Qaqish the head of asset management at Dubai-based Al Mal Capital. "Oil is not breaking the US$50 level and most importantly liquidity is drying up."

By special arrangement with Oman Arab Bank - Investment Management Group

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