By: Ahmed Allam

Oman-Mubasher: Muscat Securities Market (MSM) hit its lowest levels since April 3, 2013 to close on Tuesday at 6102.450 points, plunging 3.26% or 205.61 points, while the Shariah Index lost 2.37% to close at 952.25 points.

Mohamed Mamdouh, Technical Analyst at ‫Jazira Securities Brokerage, said that MSM is continuing its downward trend with weak technical indicators as the general index is approaching the support level of 6050 points.

In his statement to Mubasher, Mamdouh said he expects the MSM index to move in a sideways movement near the level of 6050 points.

Morgan Stanley Bank anticipatedthat Brent crude prices could reach $70 per barrel in 2015 down from $98 due to the plunge in oil prices and turbulent global oil market.

Moreover, Moody’s said in a report that GCC economies would be resilient to the pressures resulting from lower oil prices, yet  Bahrain and Oman will be more the most affected by the lower prices.

Meanwhile, Standard & Poor's (S&P) cut its outlook for Oman’s economy from stable to negative. S&P pointed out that the plunge in oil prices will have a negative impact on Oman’s fiscal and external position given the country’s high dependence on oil revenues. 

The analyst maintained his previous recommendation of “sell”.

On the sectors level, the industry, financial and service sectors dropped 3.57%, 3.42% and 1.83% respectively. 

The shares of 56 companies were traded, of which 42 dropped and 14 remained unchanged.

The top decliner was Oman National Investment Corporation Holding (ONIC) by 9.66% to OMR 0.318, leading the most active companies with a trading volume exceeding 4.5 million shares at a turnover of OMR 952,000.

Bank Muscat was the value leader, upon generating more than OMR 2.3 million from exchanging 4 million shares through 141 transactions. 

Translated by: Julian Nabil

Photo Credit: Arabianeye-Reuters