Muscat – The Muscat Stock Exchange (MSX) extended its strong upward momentum in March, delivering another month of robust gains and reinforcing its position as the best-performing market in the GCC, even as regional bourses remained under pressure amid escalating Middle East tensions linked to the Iran conflict.

The benchmark MSX30 Index closed the month at 8,168.4 points on Tuesday, marking a sharp increase of 10.5% compared with February and climbing to its highest level since 2008. The rally on the Omani bourse came despite ongoing geopolitical uncertainty surrounding the US-Israel conflict with Iran, which has weighed on regional and global equity markets since the start of the war on February 28.

Market value climbs by RO1.6bn

Total market capitalisation of the Muscat Stock Exchange rose by 4.56%, or RO1.65bn, to approximately RO37.936bn at the end of March, up from RO36.282bn a month earlier. The sharp increase was primarily driven by strong price gains in several large-cap and actively traded stocks, particularly in the banking and energy sectors.

Heavyweights such as Bank Muscat, Sohar International Bank and OQ Group-related stocks – including OQ Base Industries, OQ Exploration and Production, and OQ Gas Networks – recorded robust trading activity and price appreciation, significantly lifting overall market valuations.

The rally was accompanied by a notable rise in the MSX30 Index, which touched a monthly high of 8,179.4 points on March 30, while the lowest level recorded during the month was 7,159.5 points on March 1, highlighting the strong upward trajectory over the period.

At the stock level, Financial Services Company emerged as the top gainer, surging 71.82% during March. It was followed by Salalah Mills, which rose 66.31%, and Salalah Port Services, up 45%. Other notable gainers included Galfar Engineering & Contracting (up 44.23%) and OQ Base Industries (up 26.64%), reflecting strong investor appetite across a mix of industrial, energy and services stocks.

On the downside, Raysut Cement was the biggest loser, declining 15.23% over the month. Muscat Insurance and Oman Fisheries also recorded notable losses of 14.71% and 13.79%, respectively, while Muscat Finance and Gulf Mushroom Products saw declines exceeding 12%.

Market activity maintains momentum

Market activity on the MSX strengthened further during March. Total turnover increased by 10.17% to RO1.426bn, up from RO1.295bn in February, reflecting sustained investor interest.

The average daily trading value rose to RO71.3mn in March, compared with RO64.7mn in the previous month.

Trading volumes, however, showed slight moderation. The number of shares traded declined by 2.44% to 4.55bn shares, while the number of transactions fell by 5.54% to 115,630 trades, suggesting that higher values were driven primarily by large-cap stocks.

In terms of trading activity, Sohar International Bank led the market by value, accounting for over 19% of total traded value at RO271.6mn. Bank Muscat followed with RO242mn, while OQ Base Industries, OQ Exploration and Production and OQ Gas Networks were also among the most actively traded stocks, together contributing for over 40% of overall market turnover.

Despite heightened geopolitical risks and volatility across global and regional markets, the MSX has demonstrated notable resilience in recent months. While several GCC markets have declined amid the ongoing Iran conflict, Muscat bourse has continued to attract investor confidence, supported by strong fundamentals, liquidity inflows and sustained buying interest.

Foreign investor participation in the Omani bourse remained supportive during March. The total value of shares purchased by non-Omani investors reached RO173mn, while sales stood at RO154mn, resulting in a net foreign inflow of RO19.1mn during the month.