MSM ends pos­i­tive amid heavy trad­ing in blue chips

Oman Daily Observer - - INSIDEOMAN -

De­spite lower trad­ing com­pared to the pre­vi­ous week, MSM ended last week up amid buy­ing in blue chips stocks (Top 4 blue chips recorded ap­prox­i­mately 60 per cent of the to­tal value traded). For­eign­ers were net buy­ers dur­ing the week with net in­flows of $1.2 mil­lion.

MSM30 closed the week up by 1.56 per cent. Sim­i­larly, all sub-in­dices ended pos­i­tive led by the Fi­nan­cial In­dex (1.39 per cent) fol­lowed by the In­dus­trial In­dex (0.90 per cent) then the Ser­vices In­dex (up by 0.56 per cent on weekly ba­sis). The MSM Shariah In­dex closed up by 1.25 per cent w-o-w.

Bank Dho­far, which ear­lier an­nounced de­tails of its right is­sue, fur­ther an­nounced that the record date for the right is­sue will be November 11, 2018. Hold­ers of every 100 shares of the bank shall be en­ti­tled to be of­fered 14.84 right shares of the bank duly rounded off to the near­est num­ber. The sub­scrip­tion for the right is­sue shall be­gin on November 20, 2018 and end on December 4, 2018. Trad­ing in right shares will be­gin on November 18 and end on November 29. Ear­lier, Bank Dho­far ap­proved an is­sue price of 152 baisas per share (con­sist­ing of a nom­i­nal value of 100 baisas, a pre­mium of 50 baisas, plus is­sue ex­penses of 2 baisas) for the Rights shares of or­di­nary shares.

A multi-source project fi­nanc­ing of $4.61 bil­lion was signed for the 230,000 bar­rels per day (bpd) Duqm Re­fin­ery Project. The Duqm Re­fin­ery Project is a joint venture be­tween Kuwait Petroleum In­ter­na­tional and the Oman Oil Com­pany and is lo­cated in the Spe­cial Eco­nomic Zone in Duqm (Sezad) along the south east coast of the Sul­tanate. Th­ese fa­cil­i­ties pro­vided by 29 re­puted fi­nan­cial in­sti­tu­tions from 13 coun­tries are a tes­ta­ment to the con­fi­dence placed by in­ter­na­tional, re­gional, and lo­cal lenders in the Sul­tanate. In the weekly tech­ni­cal anal­y­sis, The MSM30 in­dex is very near to cross up the level of our re­sis­tance at 4,500 points (we men­tioned be­fore). Cur­rently MSM 30 in­dex is above the 50-day mov­ing aver­age. The in­dex will move to­wards 4,540 points if MSM30 in­dex closed above 4,500 points.

Oman Arab Bank an­nounced that it has suc­cess­fully closed un­se­cured per­pet­ual sub­or­di­nated bonds val­ued at RO 42.55 mil­lion as Ad­di­tional Tier 1 Cap­i­tal, with an is­sue price of RO 1.000 per bond, com­pris­ing the nom­i­nal value, and an in­ter­est rate of 7.5 per cent/ an­num. The bank is­sued the bonds at a value of RO 35 mil­lion with a green shoe op­tion of RO 15 mil­lion and was man­aged by Ub­har Cap­i­tal (U Cap­i­tal), who acted as the fi­nan­cial ad­viser, is­sue man­ager, and lead ar­ranger. The bank re­ported net profit of RO 21.27 mil­lion for 9M18 and as­sets of RO 2.28 bil­lion.

Shariah com­pli­ant com­pa­nies in Oman re­ported an in­come growth of 3 per cent dur­ing 3Q18 on a QOQ ba­sis, how­ever the same on a YOY ba­sis de­clined by 22 per cent. Out of 31 Shariah com­pa­nies at MSM, 25 com­pa­nies’ year ends in December. They re­ported net in­come of RO 20.87 mil­lion dur­ing 3Q18 com­pared to RO 20.25 mil­lion in 2Q17 and RO 26.8 mil­lion in 3Q17. Ma­jor rea­son for the drop in earn­ings on a YOY ba­sis de­spite amaz­ing per­for­mance of Islamic Banks was be­cause of drop in earn­ings of both ce­ment com­pa­nies (Ray­sut and Oman Ce­ment), Port Ser­vices and shell Oman Mar­ket­ing. Earn­ings of Islamic fi­nan­cial ser­vices com­pa­nies i.e. banks and taka­ful com­pa­nies rose by 318 per cent dur­ing 9M18 to RO 9.76 mil­lion com­pared to RO 2.33 mil­lion dur­ing 9M17.

The rate of in­fla­tion in the Sul­tanate of Oman in Septem­ber 2018 in­creased by 0.78 per cent com­pared to the same month of 2017, ac­cord­ing to the lat­est data re­leased by the Cen­tre on con­sumer price in­dices. The rise in the price in­dex in Septem­ber 2018 com­pared to the same month in 2017 was be­cause of rise in prices in ma­jor groups such as hous­ing, wa­ter, elec­tric­ity, gas and other fu­els by 0.59 per cent, trans­port by 5.67 per cent, restau­rants and ho­tels by 0.63 per cent, mis­cel­la­neous items and ser­vices by 0.87 per cent and ed­u­ca­tion by 4.9 per cent. Among gov­er­norates, Dho­far had the high­est rate of in­crease in in­fla­tion by 1.79 per cent, fol­lowed by Al Bati­nah North Gov­er­norate by 1.75 per cent, Al Dakhiliyah Gov­er­norate by 0.72 per cent, Mus­cat Gov­er­norate by 0.54 per cent and Al Dhahi­rah Gov­er­norate by 0.13 per cent.

Abu Dhabi ex­change led the gain­ers within GCC re­gion post­ing weekly gain of 2.2 per cent fol­lowed by Oman at 1.56 per cent while Saudi Ara­bia was the big­gest loser clos­ing down by 1.68 per cent.

GCC petro­chem­i­cal com­pa­nies an­nounced third quar­ter results for the year 2018. Over­all the sec­tor re­ported an earn­ings growth of 21 per cent to $3.0bn in 3Q’18 com­pared to $2.52 bil­lion in the same pe­riod last year. Sec­tor results were largely aided by in­crease in aver­age bench­mark oil prices which were up 46 per cent YOY dur­ing 3Q18 to $75.8/bbl. Com­pared to $52.1/bbl in 3Q17. SABIC alone amounted to 53 per cent of the to­tal earn­ings of the sec­tor fol­lowed by In­dus­tries Qatar at 12 per cent and YANSAB at 6 per cent.

A law al­low­ing 100 per cent for­eign own­er­ship of com­pa­nies in the UAE is now in force af­ter be­ing pub­lished in the coun­try’s Official Gazette. How­ever cer­tain sec­tors are still re­stricted from 100 per cent for­eign own­er­ship and ap­pear on a ‘neg­a­tive list’, they in­clude: Oil ex­plo­ration and pro­duc­tion, in­ves­ti­ga­tion, se­cu­rity & mil­i­tary, bank­ing, fi­nance and in­sur­ance ac­tiv­i­ties, wa­ter and elec­tric­ity pro­vi­sion, post, telecom­mu­ni­ca­tion and other au­dio vis­ual ser­vices, fish­ing and re­lated ser­vices, road and air trans­port, print­ing and pub­lish­ing, and a few oth­ers. (Cour­tesy: U-cap­i­tal)

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