Dow Jones Indexes and the Muscat Securities Market, the stock exchange in Oman, have launched the Dow Jones MSM Index, a total-market index that measures the performance of all companies l
Dow Jones Indexes and the Muscat Securities Market, the stock exchange in Oman, have launched the Dow Jones MSM Index, a total-market index that measures the performance of all companies listed on the Muscat Securities Market and currently comprises 66 stocks.
The Dow Jones MSM Index is designed to underlie financial products including exchange-traded funds and other investible products allowing investors to participate in the performance of the Oman stock market.
‘The co-operation with the Muscat Securities Market is an important step in solidifying our role as the leading index provider in the Gulf Co-operation Council region,’ says Michael A. Petronella, president of Dow Jones Indexes. ‘We are optimistic that this index will help to raise the profile of this ambitious and upcoming financial market as an investment destination for international investors.’
MSM director-general Ahmed Saleh Al-Marhoon says: ‘We are delighted to partner with Dow Jones Indexes for the launch of the Dow Jones MSM Index. This will allow the Muscat Securities Market to enhance the service quality and to be well positioned among exchanges worldwide, in line with international standards and practices.’
The index universe for the Dow Jones MSM Index is defined as all companies listed on Muscat Securities Market that trade at least 10 days in a quarter. Companies that trade fewer than seven days in a quarter will be deleted from the index.
The top five companies in the index by free float market capitalisation are Raysut Cement (construction and materials), National Bank of Oman (banks), Bank Muscat (banks), Oman Telecommunications (telecommunications) and Renaissance Services (media).
The Dow Jones MSM Index, which is calculated in Omani rial, is reviewed quarterly in March, June, September and December. The index is weighted by free-float market capitalisation, and weights of individual stocks are capped at 10 per cent to prevent the index being dominated by certain securities. Last year the index, which has a daily history available back to December 31, 2002, gained 72.73 per cent.
Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best known for the Dow Jones Industrial Average, Dow Jones Indexes also is co-owner of the Dow Jones Stoxx indices, and together with Wilshire Associates, provides the Dow Jones Wilshire Global Index family, which covers more than 12,000 securities in 59 markets. Dow Jones Indexes also maintains various alternative indices including measures of the hedge fund and commodity markets.
The Muscat Securities Market was established by royal decree in June 1988 to regulate and control the Omani securities market and to take part in the development of the sultanate’s financial sector. All information and financial data relating to the performance of the market and listed companies are today provided directly to investors through the Atos Euronext electronic trading system. The country now has 20 listed brokerage companies including four banks.