MUSCAT : Despite increased buying by local investment funds and institutions, the Muscat Stock Exchange remained under pressure last week as investors sold shares to raise cash for subscribing to the Oman India Fertilizer Company public offering.

Local investment funds and institutions purchased shares worth OMR132.1 million during the week, up from RO 114 million in the previous week. Trading activity also strengthened, with the total value of trades rising 16.7 per cent to RO 162.6 million, while the number of executed transactions climbed 21.5 per cent from around 31,000 to more than 38,000.

However, market sentiment remained weak, with 54 listed securities declining in value, compared to 24 gainers, while 16 stocks closed unchanged.

Trading data showed that local investment funds and institutions accounted for 81.2 per cent of total purchases, compared to 75 per cent of total sales, reflecting efforts to absorb selling pressure and diversify portfolios by accumulating stocks that had witnessed significant declines in recent weeks.

The most actively traded stocks by value included Bank Sohar International, Bank Muscat, OQ Basic Industries, OQ Gas Networks and the National Bank of Oman.

Several heavyweight stocks, including Bank Muscat, Bank Sohar International, OQ Exploration and Production, OQ Gas Networks, Abraj Energy Services, Omantel and OQ Basic Industries, posted losses, weighing heavily on the benchmark index and all sectoral indices.

The MSX main index fell 265 points to close at 7,316 points. The financial sector index dropped 287 points, the services sector index declined 74 points, the industrial sector index lost 43 points, while the Sharia Index slipped 16 points to close at 584 points.

The exchange has remained under pressure since mid-May, pushing the benchmark below the 8,000-point mark. However, market expectations remain optimistic, with analysts anticipating a recovery once IPO-related selling eases, surplus subscription funds return to the market, and companies begin announcing preliminary financial results for the first half of the year.

The market downturn also reduced the overall market capitalisation of the MSX to RO 36.166 billion by the end of last week’s trading, representing a weekly loss of RO 537.6 million.

Among individual stocks, Al Batinah Development and Investment recorded the steepest decline, falling 17.6 per cent to 70 baisa. Oman Chlorine dropped 10.8 per cent to 165 baisa, Muscat Insurance declined 9.9 per cent to 600 baisa, while Al Sharqiyah Desalination fell 8.5 per cent to 160 baisa.

On the upside, Oman Packaging gained 9.9 per cent to close at 199 baisa, Al Maha Petroleum Products Marketing advanced 8 per cent to RO 1.140, Salalah Port Services rose 6.5 per cent to 485 baisa, and Oman Educational and Training Investments climbed 5.8 per cent to RO 1.800.

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