MSX sees investors' interest in energy and communications shares

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Muscat: Energy and communications companies listed on the Muscat Stock Exchange (MSX) recorded new gains during the week that pushed the services sector index higher by 2.2 percent.

The shares of banks, financial and industrial companies declined, which pushed the benchmark index of the stock exchange and other sectoral indices to a decline.

During the week, the services sector index rose by 35 points and closed at 1,627 points, recording the only increase among stock market indices, while the main index fell by 16 points and closed at 4,546 points. The financial sector index recorded the highest declines, losing 144 points while the industrial sector index declined by 42 points and the Sharia index recorded a fall of 3 points.

The positive news for electric power and water production companies spread an atmosphere of optimism about the companies’ improved performance during the current year and their ability to continue distributing profits to their shareholders. Al Suwadi Power Company and Al Batinah Power Company said in two separate disclosures that they were able to refinance the commercial loan, and accordingly they will be able to distribute future dividends.

Al Batinah Energy shares and Al Suwadi Energy shares witnessed daily purchase orders with the maximum allowable rise in one session, which is 10 percent, which prompted stock exchange management to raise the percentage to 20 percent on Tuesday. Al Suwadi Energy shares closed at 35 baisas, rising by 52.1 percent, and Al Batinah Energy shares rose by 50 percent and closed at 30 baisas. The two shares witnessed the execution of only 9 deals worth OMR10,000 as investors held on to the shares, while daily orders at the highest price exceeded 10 million shares.

SMN Power Holding Company said that Al Rusayl Power Company, a subsidiary of the company, had received an offer to extend the current power purchase agreement (PPA) with Nama Power and Water Purchase Company from February 4 to March 31, 2024. The extension agreement has been officially signed. The company’s shares rose during the week by 6.5 percent and closed at 82 baisas.

Dhofar Electricity Generation shares rose by 6.6 percent and closed at 48 baisas, Sembcorp Salalah shares rose to 101 baisas, rising by 5.2 percent, Barka Water Desalination shares rose by 4.3 percent and closed at 120 baisas, and Barka Water and Power shares rose by 2.2 percent and closed at 46 baisas.

In the telecommunications sector, Ooredoo’s stock rose by 8.5 percent and closed at 332 baisas, and witnessed trades worth OMR1.9 million, while Omantel’s stock was able to rise during trading to one riyal and 90 baisas, but it was unable to maintain this level and closed stable at its previous level, which was one riyal and 81 baisas in trades worth OMR1.1 million.

The week witnessed four trading days, with the stock market closing for the Isra and Miraj holiday on Thursday. The trading value during the week amounted to OMR11.8 million, compared to OMR34.3 million in the previous week. The number of transactions executed decreased from 4,218 deals to 3,542 deals, and the market value of the securities declined.