FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
MUSCAT SECURITIES MARKET
The Muscat Securities Market passed the
year 2010 with an increase of 6.06%, in the
general index and a market capitalization of
19.9%
Ahmed Saleh Al-Marhoon
Director General
The Muscat Securities Market (MSM) passed
the year 2010 with an increase of 6.06%, in the
general index and a market capitalization of
19.9%. The trading activities were less by 42%
as an impact of the global crisis compared to
the year 2009. However, the foreign investment
remained at the same level of 24% as per the
market capitalization which reflects the
investors` confidence in the Omani economy.
Our focus is to develop and upgrade the
various activities of the Exchange to be in line
with our vision and the strategic plan. We
always continue to adopt methods that make
MSM able to employ the latest in the field of
the securities industry be technological or
otherwise.
You all know the importance of adopting
proper rules and regulations which enhance
credibility and investors’ confidence. With this
HISTORY AND DEVELOPMENT
The Muscat Securities Market passed through
two stages; the first started when the exchange
first established as independent governmental
entity in 1988 up to 1998.
In the beginning of this first stage there were
48 public shareholding companies listed and
six brokers; the market cap was around
$1,077.14 million USD. However, the
government encouraged the establishment of
new public companies through various
incentives especially in the industrial sector.
This resulted in rapid growth in the exchange in
terms of the number of stocks listed reaching
the peak at the end of 1996 with 97 listed
companies. Thus the market cap scored $4.21
billion USD during this period.
The second stage from 1998 till today during
which the MSM has been re-restructured upon
the establishment of three independent organs
the Capital Market Authority (Regulatory) the
MSM for listing and trading and the Muscat
Depository Company as a central depository.
Many reformatory measures have been made,
administratively, technically and legislatively. In
effect the market continued moving
progressively.
in mind MSM was the first in the region to
instigate public listed companies accept and
adhere to the principles of corporate
governance.
In its endeavors to enhance capability MSM
signed with NYSE Technologies an agreement
to upgrade the trading system to the latest
version NSC V900. This version caters for
introducing comprehensive changes to all the
components of the electronic infrastructure of
the Stock Exchange as well as the other
capital market institutions. Under the new
version, new phases as well as new features
will be added to the trading system to increase
efficiency.
The MSM conducts penetration testing yearly
to assess the overall health of the network.
This helps greatly in fixing security
vulnerabilities and in coping with the traffic
During the last few years the MSM crossed the
regional boarders to enhance more
professionalism in securities industry when it
signed an agreement for the issuance of
composite indices with Dow Jones
international. The agreement stipulates for the
issuance of two indices the first, DJ MSM
Composite Index, relates to measuring the
performance of listed companies, while the
other, DJ MSM Chip Index, relates to the most
active companies.
At the regional level the Muscat Securities
Market is a member of the Arab Union of
Exchanges and participated in several
meetings of the Arab, regional conferences,
and forums.
At the international level the MSM is an
effective member at the Federation of Euro -
Asian Stock Exchanges. Our Exchange is now
chairing the Task Force Committee for
Information and Awareness at FEAS and it
hosted the FEAS general Assembly on the year
2006.
that grows exponentially every year. We
implemented MPLS technology to link
brokerage companies with MSM to eliminate
dependence on a particular Data Link Layer
technology.
On awareness and investors education the
MSM collaborates with universities, colleges
and high schools providing them with the
relevant literatures. We also conduct
workshops and seminars to educate the new
generation about the importance of the capital
market and the role it plays in the national
economy. To support this educational
campaign, we have a dedicated website
equipped with informative data to encourage
young people and interested parties navigate
to this learning website.
FUTURE OUTLOOK
We are in the process of amending the
Commercial Companies` Law to encourage
closed and family owned business to go public
allowing public offering of 25% instead of 40%.
We think this change will attract more family
owned companies to go public hoping that
2011 will witness good number of IPOs which
will add more depth to our market.
The first quarter of 2011 may witness the first
ETFs` Fund.
The MSM shall, during the year 2011, fulfill its
quality assurance for acquiring ISO in the
Networks & Security after obtaining ISO
9001:2008 for quality management.
The MSM is an affiliate member at both the
IOSCO and the WFE and there is an ongoing
process for obtaining full membership in this
latter international organization.
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