Dow Jones Indexes, a leading global index provider, and Muscat Securities Market, the stock exchange in Oman, today launched the Dow Jones MSM Index. The index is a total-market index that measures the performance of all companies listed on the Muscat Securities Market. The index currently includes 66 stocks.
The Dow Jones MSM Index is designed to underlie financial products such as exchange-traded funds and other investable products that enable investors to participate in the performance of the Oman stock market.
“The cooperation with the Muscat Securities Market is an important step in solidifying our role as the leading index provider in the GCC region,” said 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.”
"We are delighted to partner with Dow Jones Indexes for the launch of the Dow Jones MSM Index. This will allow Muscat Securities Market to enhance the service quality and to be well positioned among exchanges worldwide, in line with international standards and practices", said Mr. Ahmed Saleh Al-Marhoon, Director General of MSM.
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 7 days in a quarter will be deleted from the index. The top five companies in the index by free float market capitalization are: Raysut Cement Co. (Construction & Materials), National Bank of Oman (Banks), Bank Muscat (Banks), Oman Telecommunications Co. (Telecommunications) and Renaissance Services S.A.O.G. (Media).
The Dow Jones MSM Index, which is calculated in Omani rial (OMR), is reviewed quarterly in March, June, September and December. The index is weighted by free-float market capitalization. Weights of individual stocks are capped at 10% in order to prevent the index from being dominated by certain securities. In 2007, the Dow Jones MSM Index gained 72.73%. Daily index history is available back to December 31, 2002.