Dow Jones Indexes creates new index linked to Omani stock market

By Devika Patel

Knoxville, Tenn., Jan. 14 - Dow Jones Indexes and Muscat Securities Market jointly announced in a press release that they have formed a new index that measures the performance of all companies listed on the Muscat Securities Market.

The Dow Jones MSM index includes 66 stocks and 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 [Gulf Cooperation Council] region," Dow Jones Indexes president Michael A. Petronella said in the release. "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."

The index universe is defined as all companies listed on Muscat Securities Market that trade at least 10 days in a quarter. The top five companies in the index by free float market capitalization are Raysut Cement Co., National Bank of Oman, Bank Muscat, Oman Telecommunications Co. and Renaissance Services SAOG.

The index, which is calculated in Omani rial, will be reviewed quarterly in March, June, September and December.

Weights of individual stocks are capped at 10% in order to prevent the index from being dominated by certain securities.

In 2007, the index gained 72.73%.

New York-based Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products.

The Muscat Securities Market, based in Muscat, Oman, was established on June 21, 1988 to regulate and control the Omani securities market and to participate, effectively, with other organizations for setting up the infrastructure of the Sultanate's financial sector.

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