MSM Releases New List of 30 Companies Approved for Day Trade

Muscat, Muscat Securities Market (MSM) announced the new list of 30 companies approved for day trading.

Badr bin Hamoud al-Hinai, Operations Manager at MSM, said that the market will work with the new list of companies approved for day trade as of 2 December 2018.

Al-Hinai said that MSM started day trade since November 2016, with the trader in this type of trading receiving an incentive of a 50% discount on the trading commission. Thus, the commission under Day trade incentive at MSM per trade for an investor amounts to 1.75 per thousand instead of 3.5 per thousand.

He also pointed out that this type of transactions aims to improve the investment environment in securities market in order to make it more attractive to investors, increase the liquidity rate, stimulate the volumes and movement of shares traded in the market and improve opportunities for active investors to get a better profit by reducing the cost of trading. It is also very useful to investors in periods in which the market is active and it can be used to reduce the cost of trading, surge up the trading volumes and movement of shares traded in the market.

He pointed out that MSM, in cooperation with the Omani Securities Association, set standards for companies subject to the reduction of trading fees in day trade, which were set in two parameters, the first of which is the volume of trading, so that the top 30 companies are selected in terms of volume during the whole year (assessment year). The second criterion is in trading days, so that the number of trading days of the company within a year shall not be less than half the number of trading days in total, in addition to the unified ceiling on all companies, which is 200,000 shares per trading day. If the trade exceeds the standard ceiling, the amount of the increase will be subject to the ordinary commission.

The listed companies include BankMuscat, Ominvest, Galfar Engineering and Contracting, Oman Telecommunications, Al Madina Takaful, Ooredoo, Gulf Investment Services Holding, Oman Fisheries, Bank Nizwa, Al Anwar Holdings, Renaissance Services, Bank Sohar, Phoenix Power, Bank Dhofar, HSBC Oman, A’Sharqiya Investment Holding, National Bank of Oman, Muscat City Desalination, Oman Investment and Finance, Al Anwar Ceramic Tiles, Al Jazeira Services, Oman Cement, Oman and Emirates Investment Holding, National Gas, Alizz Islamic Bank, Al Maha Ceramics, Muscat Finance, Al Madina Investment, Al Suwadi Power and Voltamp Energy.

The day trade means that a trader buys shares not exceeding 200,000 shares in one or more sample companies specified by the MSM and sells those shares at the same session or sell shares previously owned by the investor in one of the specified companies and repurchases them at the same session, provided that such transactions are carried out through the same broker.

Source: Oman News Agency