Wednesday, October 8, 2008

MSM plummets

Just a quick post. Despite the latest exhortations from no less a Government personage now than HE Mackie, Minister of National Economy a couple of days ago, the Muscat market continued to drop like a rock thrown off Jebel Shams, hitting 6,626.94 points.

In the past 3 and a bit months, the market has fallen almost 46%. Bank Muscat shares, just after they released reasonable Q3 results, dipped under 900 biasa per share today (and after being tipped by Muscati a few weeks ago as a buy at 1.2 rials), that a drop in the past few months of an incredible 60% from a peak of 2.22 rials.

If you're brave, this must be a time to buy Bank Muscat and Galfar. Oman's economy is secured on solid oil and gas production and oil prices are unlikely to dip below $70. Companies with mostly local engineering customers are a good buy.

People are only selling now to meet margin calls. Unless there is something really fishy going on, this market for local, quality stocks like Galfar, BM, Renaissance has hit bottom, IMHO.


  1. I feel as a prudent investor it is better to wait and watch, then investing now. Even if we dont make money it is ok...atleast we dont loose...

    i am not sure Middle east can function in isolation...the world market is in someone said, the whole bailout is like giving a new credit to settle the old credit card dues...the present medicine will cure the symptom and not the disease...hmm

    the most common mistake people commit is ...the shares will reach the high again..exp one is not sure when BM can touch 2.3 again?

    the whole scenario has better watch then plunging in..

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