Stronger Liquidity at Muscat Stock Exchange

Business Sunday 04/January/2026 19:52 PM
By: ONA
Stronger Liquidity at Muscat Stock Exchange

MUSCAT: Muscat Stock Exchange issued the updated annual list of securities eligible for market making activities.

The list identifies the securities on which market making operations and continuous buy and sell orders will be provided, with the aim of enhancing liquidity, improving trading efficiency, and narrowing bid-ask spreads.

This year’s list reflects a notable expansion in the number of eligible securities, increasing from 13 securities in the previous year to 22 securities this year. This growth indicates improved liquidity levels, higher trading activity, and a broader base of securities meeting the regulatory and technical requirements for market making.

The eligible securities are distributed across sectors as follows: 11 companies from the Services sector, 9 companies from the Financial sector, one company from the Industrial sector, and one investment fund, bringing the total number of eligible securities to 22, representing the main sectors of the market. This wider sectoral diversification contributes to enhanced market depth and more balanced trading activity.

Market making is a key mechanism supporting the efficiency of capital markets. Market makers provide continuous buy and sell orders for designated securities, contributing to improved liquidity, more efficient price discovery, orderly trading, and reduced unjustified price volatility. This activity also enhances the market’s ability to absorb investor orders and execute trades more efficiently, particularly for securities that require additional liquidity support.

In this context, market making activity at Muscat Stock Exchange recorded notable progress over the past year, with ten liquidity provision agreements concluded with listed companies. These agreements form part of ongoing efforts to deepen trading activity and improve liquidity levels across a number of eligible securities. In addition, the number of licensed and registered companies authorized to manage market making activities reached six, reflecting growing institutional interest in this activity and its increasing role in strengthening the market’s operational structure and efficiency, in line with international best practices.

Muscat Stock Exchange clarified that the list is issued on an annual basis based on defined criteria that take into account liquidity levels, trading volumes, and the consistency of trading activity. The updated list will be effective as of 1 January 2026, and all relevant parties are required to comply with the applicable regulatory frameworks.

This expansion in the list of securities eligible for market making activities reaffirms Muscat Stock Exchange’s commitment to developing the market, enhancing liquidity improvement tools, and fostering a deeper and more efficient trading environment that serves investors, supports market stability over the medium and long term, and strengthens the Exchange’s role as a well-regulated investment platform capable of accommodating future growth.