Stocks rally with crude on Fed rate odds

6/30/2016 7:02:11 AM

(MENAFN- Muscat Daily) Muscat-

Omani stocks rallied amid speculation that policy makers will mitigate the damage of the UK''s vote to leave the European Union, including a pause in the Federal Reserve''s tightening cycle.

The Muscat benchmark closed 0.32 per cent higher at 5,779.59. Volume and turnover improved to 15.2mn and RO3mn, respectively. Of the 45 stocks traded, 19 closed higher, while only two slipped and 24 remained unchanged.

A total of 973 trades were registered against 545 the previous day. All the sub-indexes ended in the green.

The Industrial gauge added 0.45 per cent at 7,289.15, while the Financial Index put on 0.66 per cent. The Services index was up 0.41 per cent. The MSM Shariah index closed with gains of 0.30 per cent at 883.61. Top gainers on the bourse included Al Sharqia Investment Holding (+7.69 per cent), National Gas (+4.55 per cent) and Al Hassan Engineering (+3.90 per cent) while chief laggards were Oman Hotels & Tourism (-9.59 per cent) and Oman United Insurance (0.40 per cent).

Oil prices extended gains on Wednesday, tracking a recovery in equity markets.

Around 1000 GMT, the London benchmark Brent crude added 46 cents to US$49.04 and US benchmark West Texas Intermediate rose 57 cents to US$48.42.

Official data on US commercial crude stockpiles, which is used to gauge demand in the world''s top oil consumer, is due later in the day. But data from the private American Petroleum Institute (API) released late on Tuesday encouraged expectations of a further drop in US crude oil stocks.

The API''s data had US crude stocks declining by 3.9mn barrels last week after having dropped by 5mn barrels the previous week.

By special arrangement with Oman Arab Bank - Investment Management Group

- With inputs from AFP

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