ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
MUSCAT SECURITIES MARKET
Ahmed Saleh Al-Marhoon
Director General
We are continuously working on developing
and operating an efficient and transparent
securities market to the best standard
expected by our local and foreign investors.
We believe that exchanges that adhere to
good governance, greater transparency and
greater accountability, are able to foster
investors` confidence as well as creating
attractive investment environment.
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 R.O.
414.7 millions (One Rial=2.59781 US$).
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 R.O. 1.62 billion 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.
The MSM 30 Index posted the best
performance amongst Arab Capital Markets
during the last two successive years 2006 and
2007. It closed higher by 62% to register
9035.48 points. It was the only Gulf index,
which did not retract during 2006.
During the last view years the MSM crossed
the regional boarders to enhance more
professionalism in securities industry when it
signed an agreement for the issuance of
PAGE 128
We believe that exchanges that adhere to
good governance, greater transparency and
greater accountability, are able to foster
investors’ confidence as well as creating
attractive investment environment.
We at Muscat Securities Market (MSM),
however, have devised a comprehensive road
map that enables us to build capacity and
promote sustainable capital market
development strategy specifically aimed at
improving access to the regional and
international capital markets. In view of the above MSM recently revised its
legislation with respect to listing, trading and
clearance and settlement regulations to enable
MSM to cater for what our market demands.
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. Installing new screens in the investors trading
hall and a tape ticker for displaying shares
prices outside the building.
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. Implementing procedures for updating the
electronic trading system and its accessories.
Providing Technical Training to manage Linux
system, which is used in the operation of new
issues of the electronic trading system.
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. Developing the Market Internet Website.
Providing instantaneous news broadcasting
service for companies using RSS.
The MSM is a correspondent member at the
IOSCO and an affiliate member at the WFE
and there is an ongoing process for obtaining
full membership in this latter international
organization.
FUTURE OUTLOOK
Development of procedures and rules
governing the activity of market makers.
Updating the MSM regulations and
organizational structure.
Working to satisfy the requirements of the
World Federation of Exchanges for obtaining
full membership.
The MSM is currently working to be certified on
the following fields:-
• ISO 9001 - Quality Management
• ISO 27001 - Information Security
• BCM 25999 - Business Continuity Plan
We are endeavoring to strengthen our
experience for a more scientifically built stock
market.
Continue working with Muscat Depository for
the installation of new systems for the Central
Depository.
Linking brokerage companies with the MPLS
network of Omantel.
Maintaining all the annual reports of the market
since inception and until 2009 in (PDF) files for
injecting them at MSM website.
Creating a database for Gulf, Arabic, Asian and
European exchanges with the reports and
conducting comparisons between the stock
exchange.
Translating the necessary regulations and
organizational structure of the market.
In 2009 were assigned the design work and the
establishment of the site for a host of e-
commerce is expected to be completed in
2010, and will be marketing the site through
various marketing channels.