Muscat – The main index of the Muscat Stock Exchange (MSX) broke through the 7,000-point barrier last week, reaching its highest level since November 2014. The rally was driven by local investment funds and institutions continuing to inject liquidity into the market, targeting several leading stocks.

The main index posted a strong performance, rising 11.7% over the week to close at 7,177 points at the end of Thursday’s trading, marking a gain of around 753 points.

The MSX30 index began the year above the 6,000-point level on January 5 and has maintained its upward trajectory, supported by increased buying activity from local investment funds and institutions, as well as improving investor confidence.

The sharp gains in the main index were supported by all sectoral indices. The financial sector index added 1,365 points to close above 12,460 points, reflecting a 12.3% rise. The increase was led by banking and investment company stocks, with shares of Sohar International, Bank Muscat and Bank Nizwa reaching new record highs. Other banks and investment firms also extended their gains.

The services sector index advanced 8.2% to close at 2,762 points, up 210 points, driven by gains in telecommunications, energy and other service-related stocks. The industrial sector index climbed by around 400 points to end the week at 9,430 points, representing a 4.4% increase. Meanwhile, the Sharia-compliant index rose 7.9% to close at 639 points, gaining 47 points during the week.

Amid strong gains across sectors, the MSX’s market capitalisation rose by more than RO1.856bn last week, closing at RO35.754bn.

Trading activity also strengthened. The value of traded shares surged 74% to RO377.2mn, compared with RO216.9mn in the previous week. The number of executed transactions rose 57% to exceed 39,000.

A total of 68 securities recorded gains during the week, while 11 declined and 19 remained unchanged. Shares of National Aluminium Products posted the highest gain, rising 42.2%. Sohar International advanced 26.2%, Salalah Mills climbed 25.8%, International Financial Investments Holding rose 25.5%, and Financial Services gained 23.7%.

On the downside, Al Batinah Development and Investment led the decliners, falling 23.3%. Muscat Gases dropped 3.7%, while Oman Chlorine declined 2.1%.