MUSCAT -- The investor community on the Muscat Securities Market (MSM) jumped to touch 300,000 now from as low as 4,000 investors when the bourse started trading way back in 1989. "The marked growth in investor community is a positive indication for the bourse," said Ahmed al Hooty, Director of Public Relations and Media of the MSM. He was addressing a two-day forum on creating awareness on stock market trading among college and higher secondary students at the Sultan Qaboos University.
The phenomenal growth in the number of investors was mainly due to the partial divestment of Oman Telecommunications Company and several other state-owned companies and the initial public offerings of major firms in the recent past. The gains from stock market investment in the recent past also attracted more and more investors to park their funds on the local bourse.
The market capitalisation of MSM soared by 15.8 per cent to RO 7.205 billion by end-August 2007, over end-2006. Foreign investors, especially regional institutions, are also playing an active role in Omani bourse in recent months. The combined share trading by foreign investors on the MSM accounted for 25.99 per cent of the RO 128.68 million turnover of the bourse in August 2007. Al Hooty said there was a direct relation between economic growth and the market trend. Growth in the economy is directly reflected on the market trend and vice-versa.
As many as 2,000 to 3,000 students, from SQU (Commerce and Economics Department), private colleges, higher secondary schools, have participated in the forum yesterday. The event, organised by the Muscat Securities Market in association with SQU, was held under the auspices of Saud bin Salem al Balushi, Under-Secretary at the Ministry of Education for Planning and Human Resources.
Saud said that the forum would help students to acquire knowledge on the financial market and stock market trading. The Education Ministry, he said, would include subjects like financial markets in the curriculum of 11th and 12th standard students. Students from schools will be encouraged to learn more on trading on the stock market.
Ahmed bin Saleh al Marhoon, Director-General of MSM, said that the forum has two separate sessions one for students to familiarise with stock trading and another for brokerage firms to showcase their services. The students were allowed to carry out demo trading.
Stock exchanges from Egypt and Jordan, who participated in the exhibition, also created awareness on investment opportunities on their bourses. Brokerage companies, Capital Market Authority, Muscat Securities Market, Investment Club (formed by the Commerce and Economics Department of SQU) have participated in the exhibition. The forum will continue today between 9 am and 3 pm.
By A E James
© Oman Daily Observer 2007
