Despite the sluggish trend in Gulf stock markets on uncertainty over the eurozone debt crisis and oil price concerns, the listing of Bank Nizwa and rights issues of other financial sector firms have boosted market capitalisation in the Muscat Securities Market (MSM) to RO11.13bn by the end of June.
Despite a 1.13 per cent fall in the benchmark MSM30 index in June, the local bourse added another RO508mn to its market capitalisation during the month.
Market experts attribute this growth in market capitalisation to Bank Nizwa's listing, rights issues of other banks and financial sector firms and appreciation in the value of stocks outside the benchmark index.
Due to the increase in market activity on the back of Bank Nizwa's listing, total monthly turnover on the MSM rose six per cent to RO85mn from RO80mn in the previous month. Bank Nizwa topped the trading value list with RO28.6mn, representing 33.6 per cent of the total for the month.
Dr Hani al Anani, adviser to the MSM, said that lower valuations of listed companies outside the MSM30 index have been creating demand for stocks on the bourse and helping to boost market capitalisation, though market volumes have not changed much.
He said, "The listing of Bank Nizwa and rights issues have boosted market capitalisation. Bank Nizwa created good activity on the market but that was below our expectations. The volumes were higher for Bank Nizwa but it failed to increase overall market volumes significantly."
© Muscat Daily 2012
