MUSCAT -- On the back of better-than-expected results being announced by the companies and optimism prevailing on the global and regional markets, the Muscat Securities Market (MSM) continued to rally positively. The benchmark MSM30 index closed with gains at 6,251.93 points last week. "Higher earnings reports and increased dividend expectations have added steam to investors' interest," says Joice Mathew, Senior Manager, Research at United Securities. The MSM Index, which opened the year in green, has been showing a positive trend despite a roller coaster ride for some time in middle of the first quarter.
"The positive trend is expected to usher in more positive sentiment in the market in the coming days", adds Joice. Transgulf Holding was the most active in terms of volume while Bank Muscat was the most active in terms of turnover on the day. Al Anwar Holding remained as the top gainer for the day to close up by 4.21 per cent while National Mineral Water was the top loser for the day and closed down by 6.98 per cent. The MSM companies have been paying out consistently high dividends that continue to attract investors even during a temporary slowdown in market activity. The cash dividends paid by the MSM Index companies have shown a consistent growth during the last nine years.
Total cash dividends paid by companies that are part of the index for the last nine years increased from RO 140 million in 2004 to RO 252 million in 2012, registering an impressive 80 per cent growth during the period. While the performance of investment holding companies continues to be impressive, the results from industrial sector including the cement companies are attractive to the investors.
At the session close last week, GCC and Arab were net buyers for RO 805,000 followed by foreign investors for RO 191,000 while Omani investors were net sellers for RO 996,000 worth of shares. The improving participation of foreign investors too signals their increasing confidence in the market fundamentals. After the previous three years of shying away from investing in MSM, foreign participation has been encouraging during the last year.
© Oman Daily Observer 2013
