New initiatives to help revitalise trading on MSX – Oman

Muscat: The Muscat Stock Exchange (MSX) recently unveiled a series of innovative steps that would help stabilize the exchange and revitalize trading.

The initiative’s significance lies in its capacity to easily provide liquidity for securities, maintain a balance between supply and demand, and limit the existence of offers to buy or sell securities without accompanying requests from the other side to do the same.

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The chairman of the board of directors of one of the businesses authorized to act as market makers, Mustafa bin Ahmed Salman, anticipated that the initiatives announced by the Muscat Stock Exchange would help to revive trading and bring stability to the stock exchange.

The United Securities Company is eager to be proactive in enhancing activities and services that contribute to the revitalization of the stock exchange due to the company’s experience in this field, he said in a statement to Oman News Agency, confirming that these initiatives are in line with the directions of a number of brokerage firms operating in the Muscat Stock Exchange.

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“This activity gives the licensee the ability to place different orders at different levels on a continuing basis,” he said, highlighting the significance of the new efforts. It helps to give the stock market some depth and the traded firms some presence.

This activity is crucial because it assures investors that there are ongoing demands for and offers made to enterprises. The pricing process for these companies will be more effective as a result of the availability of liquidity, the opportunity to buy or exit at the ideal time, and the creation of continuous movement in the shares.

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Mustafa bin Ahmed Salman explained that in order to begin the activity of a market maker, the company must first train a specialized work team to monitor the company and establish trading mechanisms. In addition, it is necessary to find electronic systems that place quick, numerous, and continuous orders at various levels automatically and actively, based on equations added by the work team after observing news and information that may affect the gene. The levels of stability, support, and resistance in technical analysis should be the subject of ongoing investigations. As a result, the amounts of these orders in terms of margin ratio are chosen, as are the proper times to move and place orders. “We have developed a procedure guide that governs the trading process and how to deal with it, as well as its goals and ethical standards,” he stated.

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“Allocating a fund to support the stock exchange with a size of OMR 100 million is a very positive step to give investors a guarantee regarding the availability of liquidity in the stock exchange,” said Mustafa bin Ahmed Salman. We must be aware that an investor who begins trading on the public markets anticipates making investments in businesses that he can exit at the right time.

“This is a different investment than investing in closed companies, and if the stock market loses liquidity, it loses the elements that make it attractive, so the existence of this fund is very important and provides comfort to all investors, whether they are local or foreign investors, and this importance changes the method of evaluating companies by giving them better pricing and thereby gradually canceling the discount that it is calculated on companies when evaluating

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He emphasized that the stock market’s revitalization will have a beneficial impact on the flow of new listings and will encourage businesses to become public shareholding companies and list their shares on the stock exchange.

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