From Saleh Al Shaibany
MUSCAT - The third quarter financial results continued to boost the Muscat Securities Market's index for the second consecutive week closing 1.22 per cent higher than the previous week with 182.7 points. "Strong corporate results have inspired investors into making firmer commitments than the other week," a trader said.
"The total turnover is not as big as last time since most of the gain this time was due to smaller shares, rather than blue-chip companies, where investors found bargains," he added.
Total traded shares dropped by more than half to four million shares during the week compared to 8.8 million shares a week earlier while the volume reached 6.14 million rials from 9.9 million rials. The biggest gainer of the week was Oman Fibre Optic, which made 270 baisas to 1.110 rials followed by Raysut Cement gaining 190 baisas to close the week at 1.040 rials.
BP Oman, which is expected to be majority owned by Oman Oil Company, rose 10 baisas to 2.890 rials. Bank Muscat, the biggest volume mover of the week trading 900,000 rials worth of shares, made 50 baisas to 3.580 rials. The biggest decliner was Transgulf Industrial Investment Holding, which lost 110 baisas to 590 baisas and Salalah Port Services shed 50 baisas to 2.550 rials while National Securities dropped 60 baisa to 670 baisas. Analysts, however, said that the stock exchange needed some fresh injection of funds to keep it buoyant in the long-term.
"We cannot just rely on quarterly results to lift the MSM and then see it drop down soon after the steam has boiled over. We want to see new players in the market like what is happening to BP or Al Maha," an analyst said. BP PLC has agreed to sell its 49 per cent shares in its subsidiary BP Oman to state-run Oman Oil Company. Officials said that the two sides were expected to sign an agreement this month to complete the sale. Private Omani shareholders will retain the other 51 per cent shares of BP Oman. Oman's Ministry of Finance said yesterday that it would sell up to 40 per cent of its 65 per cent stake in Al Maha Petroleum Products Company, an investment arm of Oman Refinery Company, to the public. Abu Dhabi's ABS Lubricants owns the other 35 per cent of Al Maha, which operates 84 petroleum service stations in Oman.
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