The benchmark index of the Muscat Stock Exchange (MSX) has crossed the 4,000 points mark, exceeding pre-pandemic levels for the first time in past 15 months.
Continuing its recent upward trend supported by the positive outlook on local and global economies and oil prices, the MSX30 Index on Wednesday rose nearly 1 per cent to close at 4,019.8 points, the highest level since March 5, 2020.
The rise in the main index on Wednesday was mainly supported by financial sector stocks. Shares of BankDhofar and Sohar International Bank jumped by 4.3 per cent each.
Financial sector and services sector indices rose 1.3 per cent and 0.3 per cent, respectively, while industrial sector index closed almost flat for the day.
The Omani bourse recorded robust trading activity on Wednesday as the market turnover increased by more than 74 per cent to RO4.95mn compared to RO2.84mn on Tuesday.
Supported by reopening of the economic activities and improved oil prices, the MSX30 Index has recorded nearly 10 per cent gains since the beginning of 2021.
Price of Oman’s crude oil last week recovered to its pre-pandemic levels of US$70 per barrel, having hit the highest level in past 18 months.
Oman crude price on Wednesday further increased by 2.5 per cent to reach at US$71.38 per barrel at the Dubai Mercantile Exchange.
The rising trend in oil prices comes amid optimism for a vaccine-led global economic recovery and effective coordination and commitment by major OPEC and non-OPEC producers to restrain supply of crude.
‘Within the region, oil remained the star performer which pulled the markets higher. OPEC+ agreement which targets the gradual easing of curbs on supplies until the end of July made way for oil price to go above US$70 per barrel after a considerable period. With oil prices looking to stay comfortably above US$70 we advise investors to look for stocks which will benefit from high oil prices such as petrochemicals,’ Ubhar Capital noted in its weekly market report.
On Wednesday, the announcement of Oman’s highly successful issuance of dollar sukuk worth US$1.75bn was received positively by investors at the Muscat Stock Exchange.