MSX index falls by 163 points in weekly trading

Muscat: The main index of the Muscat Stock Exchange declined by 163 points during the week and closed at 7,480 points, affected by the pressures that stocks faced with the escalation of geopolitical tensions in the region.The sectoral indices recorded a collective decline, led by the industrial sector index, which lost 178 points, the financial sector index, which fell by about 145 points, the services sector index, which fell by 84 points, and the Sharia index, which fell by 15 points. During the week, publicly listed companies on the Muscat Stock Exchange announced their preliminary financial results for the first half of this year, showing profit growth and a general improvement in performance. However, this was not reflected much in share prices, as investors await further incentives and a more stable situation. The Muscat Stock Exchange witnessed a decline in trading value, transactions executed, and market capitalisation during the week. Trading value decreased from OMR247.8 million to OMR137.53 million, transactions executed recorded a 28 percent drop from 58,000 transactions to 41,758 transactions, and market capitalisation declined to OMR38.48 billion, recording weekly losses estimated at OMR244.3 million.OQ Basic Industries shares attracted investors, witnessing trades worth OMR22.7 million, representing 16.5 percent of the total trading value. OQ Exploration and Production came in second place with trades worth OMR21.7 million, Bank Muscat came in third with trades worth OMR18.8 million, and Bank Sohar International came in fourth place with trades trades worth OMR17.9 million. OQ Gas Networks shares witnessed trades worth OMR16 million, representing 11.6 percent of the total trading value.The weekly price bulletin issued by the Muscat Stock Exchange showed a decline in the prices of 55 securities, compared to 20 securities whose prices rose and 21 securities that remained unchanged at their previous levels. Oman Chromite shares topped the list of gainers, rising by 19.1 percent and closing at OMR3.50. Oman Oil Marketing Company shares rose by 9.9 percent and closed at OMR1.20.Al Madina Investment shares climbed to 36 baisa, recording an increase of 9 percent. Oman Finance Free Bonds 2022 recorded an increase of 6.2 percent and closed at 85 baisa, and Oman Finance Services Bonds 2026 rose by 5.6 percent and closed at 75 baisa.Al Batinah Development and Investment shares led the decliners, falling by 21.4 percent to close at 55 baisa. Sohar Power shares fell to 245 baisa, registering a drop of 18.3 percent. Oman and Emirates Investment Holding shares declined by 10.6 percent to close at 143 baisa. Oman United Insurance shares fell by 10 percent to close at 324 baisa, and Salalah Port Services shares dropped to 480 baisa, registering a decline of 9.9 percent.In company news, Bank Nizwa announced that it has submitted a non-binding letter of intent to the board of directors of Oman Arab Bank, including a proposal for a merger by acquiring Alizz Islamic Bank into Bank Nizwa. The proposal includes Bank Nizwa acquiring all of Alizz Bank's issued share capital at an indicative valuation of 1.2 times book value, followed by the merger of Alizz Bank into Bank Nizwa.The merger is planned to be financed through a combination of equity and capital instruments, including the issuance of Tier 1 perpetual sukuk and a strategic investment by Oman International Development and Investment Company (Ominvest), whereby the company will own a strategic stake of up to 20 percent of Bank Nizwa's issued share capital through subscription to the new shares. Ominvest stated that its board of directors has approved the company's participation as a strategic investor within the proposed financing structure.