MSM ends the week up despite lower volumes and turnover

MUSCAT: The MSM 30 Index closed the week up by 0.12 per cent despite lower volume and turnover as compared to the previous week. Shariah index was down by 0.07 per cent.

The turnover and volumes were lower than last week by 61 per cent each. Foreigners continued to remain net sellers last week as well. Omanis and GCC investors were net buyers of $1.73 million worth of securities.

Oman’s real estate activity has dropped as the value of real estate exchange by the end of June 2020 stood at RO 1.05 billion, compared to RO 1.24 billion by the end of June 2019, according to statistics released by the National Centre of Statistics and Information (NCSI).

The data shows that fees collected from all legal transactions dropped 33.1 per cent YOY and the exchanged value of 21,473 sale contracts declined by 27.3 per cent YOY to RO 354 million in June 2020. The value of mortgage contracts also dropped by 13.2 per cent YOY to RO 651.7 million.

The Ministry of Finance has issued a circular on the rules for preparing the state’s general budget estimates for 2021.

The foundations will include, among others, the following: Budget allocations should be in accordance with the financial framework of the tenth five-year plan (2021-2025); Determining the budget ceiling for each agency, so that it does not exceed the amended budget in the year 2020; Continuing to implement procedures aimed at rationalising spending and raising its efficiency;

Controlling the deficit and maintaining its downward course; Searching for innovative financing methods to finance some government projects and services; and Enhancing the partnership between the public and private sectors in a manner that enables accelerating the implementation of projects without disturbing financial balances at the macroeconomic level.

Oman banking sector’s total credit stood at RO 26.54 billion (+0.6 per cent MOM and +3.3 per centyoy; YTD: +2.7 per cent). Total deposits stood at RO 24.08 billion (+0.5 per cent MOM and +5.7 per centyoy; YTD: +2.1 per cent).

Total private sector credit stood at RO 23.15 billion, (+0.5 per cent MOM and +2.6 per cent YOY; YTD: +2.1 per cent). Loan-to-deposit ratio stood at 110.2 per cent vs. 109.2 per cent in December 2019.

Furthermore, CBO’S foreign assets as at the end of May 2020 stood at RO 6.86 billion, having increased by 10.7 per cent YOY and 7.8 per cent MOM or RO 494 million in May 2020. The MOM increase is brought on by a 16.1 per cent MOM rise in placements abroad (which account for half of the total foreign assets), a 0.1 per cent MOM increase in securities held (48 per cent of total), 11 per cent MOM increase in RO reserve assets and 20 per cent MOM increase in bullion.

CBO’S foreign assets are above the trailing 12-month simple average of RO 6.36 billion. These assets include bullion, IMF reserve assets, placements abroad and foreign securities.

[Courtesy: U-capital]