Allaying the fears of investors, the Muscat Securities Market staged a comeback yesterday with the benchmark MSM30 index gaining 1.29 per cent to close at 5,427.50 points.

The local bourse has been hit by concerns over global economic recovery and selling pressure on heavyweight stocks, following rights issues.

“Although the market witnessed a flurry of rights issues by leading banks and holding companies, the index continued to dip following offloading of shares by investors,” says an analyst at a leading brokerage firm.

Foreign investors and major institutions are selling banking shares on fears that the new regulations on interest-rate ceiling and monthly instalments will weigh on the retail segment, he adds.

In yesterday’s trading Gulf Investment Services was the most active in terms of volume while bank muscat was the most active in terms of turnover.

Al Anwar Holding was the top gainer for the day and closed up by 8.57 per cent, while Oman Textile was the top loser for the day and was down by 4.11 per cent.

'The summer period is traditionally quiet and trading levels are down,' he says, adding, the downward trend is likely to continue in the third quarter.

Surging for the first time after two weeks of consecutive negative rally, a total of 1,486 trades were executed in yesterday generating turnover of RO 4.40 million with over 21.96 million shares changing hands.

Of the 53 traded stocks, 37 advanced, 4 declined, and 12 remained unchanged. At the session close, GCC and Arab investors were net buyers for RO 466,000 followed by foreign investors for RO 394,000 while Omani investors switched to net sellers for RO 860,000 worth of shares. Financial Sector Index was up by 2.49 per cent and closed at 6,040.56 points.

Al Anwar Holding, Transgulf Holding, Global Financial Investment, Gulf Investment and Financial Services increased by 8.57 per cent, 7.35 per cent, 7.32 per cent and 6.15 per cent respectively. DIDIC was the only loser in the sector and was down by 1.27 per cent to close at RO 0.395.

The Industrial Sector Index was up by 0.99 per cent and closed at 6,587.72 points. Construction Material Industries, Dhofar Cattlefeed, Oman Fisheries, Voltamp Energy and National Aluminium Products increased by 6 per cent, 5.26 per cent, 5 per cent, 4.87 per cent and 3.08 per cent respectively. Oman Textile Holding, Asaffa Foods and Al Anwar Ceramic declined by 4.11 per cent, 1.50 per cent and 0.28 per cent respectively.