Better dividends drive Muscat bourse

MUSCAT: Recovery on the Muscat Securities Market (MSM) is expected to gather momentum, thanks to better dividend announcements of the corporate sector and a firm trend in crude oil prices.

Dividend announcements so far were in line with the market expectations.

“The broad market outlook is positive, although a rally was not seen in the market,” said Suresh Kumar, head of research at Al Maha Financial Services.

He said the market had remained flat in the last couple of months, after a rally amidst Opec’s decision to cut oil pro- duction. “Dividend announcements are in line with the market expectations, which are based on historic payouts. This is partially driving the market,” added Suresh Kumar. Besides, the macro-economic factors are also favourable.

The MSM general index rose 17.32 points to close at 5,869.43, with 20.42 million shares changing hands on Wednesday. The major gainers include Oman Textiles, Oman Fisheries, Oman and Emirates Investment Holding, Galfar Engineering and Contracting, Renaissance Services and HSBC Bank Oman.

Better demand was seen in the case of stocks that lost value in the last month or so. > B2