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MSX launches ‘liquidity provider’ services

14 Jan 2024 By OUR CORRESPONDENT

Muscat – The Muscat Stock Exchange (MSX) celebrated the inauguration of its new ‘liquidity provider’ service on Sunday as part of the Market Making Initiative, in collaboration with the National Financial Sustainability Programme.

Haitham Salim al Salmi, CEO of the Muscat Stock Exchange, highlighted that the liquidity provider service aims to offer a diversified liquidity portfolio consisting of approved stocks.

Salmi noted that two liquidity provider agreements are now in effect. Omantel has appointed United Securities Company as the liquidity service provider for Omantel shares, and Sohar International Bank (SIB) has designated Ubar Capital as the liquidity service provider for SIB shares listed on MSX.

The objective of the new service is to bolster stock liquidity, ensuring a consistent availability of shares for both purchase and sale within selected securities. Additionally, the Muscat Stock Exchange aims to establish criteria that will elevate MSX standards through increased liquidity.

Mustafa Ahmed Salman, Chairman of United Securities Company, emphasised that the liquidity provider acts as a mechanism for daily stock trading, facilitating opportunities for buying and selling shares with an estimated ratio of 2% between supply and demand.

Salman believes that this mechanism will contribute significantly to the development of a robust trading volume for listed shares.

The liquidity providing service is in line with the MSX’s plan to expand market depth, promote its role in raising capital, and create a conducive investing environment that will encourage public offerings and attract domestic as well as foreign investment.

The MSX’s strategy to encourage investment through various means will contribute to the revitalisation of capital markets, placing them at the forefront of economic development and supporting Oman’s Vision 2040.

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