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Muscat Stock Exchange recorded 9.9 per cent gains in July, helped by higher oil prices, economic recovery and strong earnings

The Muscat Stock Exchange outperformed all its GCC counterparts in July as the benchmark MSX30 Index recorded a 9.9 per cent gain during the month, its biggest monthly rise since the start of the COVID-19 pandemic in 2020.

Most GCC markets rebounded in July on strong quarterly earnings, higher oil prices and global economic recovery. The Muscat Stock Exchange recovered after its lacklustre performance and volatile trading during the previous months.

The MSCI GCC Index reported the biggest gain in six months at 6.1 per cent in July 2022, broadly in line with global equity markets, according to a Kamco Investment report released on Monday.

'Performance within the GCC was also positive across the board with Oman seeing the biggest monthly gain of 9.9 per cent closely followed by Qatar and Saudi Arabia with gains of 9.7 per cent and 5.9 per cent, respectively. Abu Dhabi and Dubai markets lagged with smaller gains of 3.1 per cent and 3.6 per cent, respectively,' Kuwait-based Kamco Investment said.

The MSX30 Index continued its gaining streak for the second consecutive month during July, recording the largest growth among the GCC indices, to close the month at 4,532.1 points.

Sectoral performance

In terms of sectoral performance at the MSX, both services and financial indices increased during July by 5.8 per cent and 10.0 per cent, respectively. The industrial index showed the only decline falling 0.9 per cent to close the month.

In terms of company performance, Oman Chlorine Company topped the monthly gainers list in July recording 31.4 per cent increase in share prices. Galfar Engineering and Contracting Company was next with a gain of 28.4 per cent followed by HSBC Bank Oman and Dhofar Generating Company with 23.2 per cent and 21.0 per cent increases in their respective share prices during the month.

Galfar recently won a RO73mn contract to construct a dual carriageway project in

Duqm. The contract has a duration of 36 months and was awarded by the Public Authority for Special Economic Zones and Free Zones.

On the other hand, Al Jazeera Steel Products Company posted the largest share price slide for July witnessing 14.4 per cent share fall followed Dhofar International Development Holding and Oman Refreshment Company for the second and third spot on the decliners table recording 11.5 per cent and 10 per cent share fall, respectively, during the month.

Monthly trading activity on Oman's stock exchange remained mixed during July, similar to the previous month. Total volume of shares traded during July dropped 13.4 per cent to reach 219.9mn shares as compared to 254mn shares during June.

Galfar topped the monthly volume traded chart registering 36.4mn of shares traded, followed by Bank Muscat and Bank Nizwa with 27.9mn and 22.5mn in trades during the month.

Monthly market turnover at the MSX, on the other hand, witnessed an increase of 4.0 per cent to reach RO53mn in July. Bank Muscat topped the value traded chart witnessing RO15.3mn of its shares changing hands during July followed by Omantel and Galfar with RO6.5mn and RO4.2mn in trades, respectively.