MSM traded value drops in Oc­to­ber

Times of Oman - - MARKET -

MUS­CAT: The value of trad­ing in the Mus­cat Se­cu­ri­ties Mar­ket (MSM) in Oc­to­ber 2018 de­clined to OMR40.2 mil­lion com­pared to OMR48.9 mil­lion in Septem­ber, a de­cline by 17.7 per cent.

The trad­ing of last month is con­trary to the 15.1 per cent growth in the gross do­mes­tic prod­uct (GDP) at cur­rent prices, from OMR12.7 mil­lion in the first six months of 2017 to OMR14.7 mil­lion in the cor­re­spond­ing pe­riod in 2018.

Many other eco­nomic in­di­ca­tors were also on the up­side this year. The Sul­tanate’s rev­enues in­creased to OMR6.6 bil­lion in the first eight months of this year com­pared to OMR5.3 bil­lion in the cor­re­spond­ing pe­riod of 2017, a growth by 24.4 per cent.

The Sul­tanate’s for­eign trade in the first half of this year jumped to OMR7.7 bil­lion com­pared to OMR6 bil­lion in the cor­re­spond­ing pe­riod last year. The av­er­age price of Oman oil as of Septem­ber 2018 in­creased to US$67.2 per bar­rel com­pared to $50.6 dur­ing the same pe­riod last year, a growth by 32.7 per cent.

The good per­for­mance of the na­tional econ­omy co­in­cided with many lead­ing com­pa­nies post­ing good re­sults in the third quar­ter of 2018. The prof­its of Bank Mus­cat, the big­gest listed com­pany in MSM in terms of cap­i­tal­i­sa­tion with OMR1.2 bil­lion, in the first nine months of the year, in­creased to OMR134.7 mil­lion com­pared to OMR130.2 mil­lion dur­ing the cor­re­spond­ing pe­riod last year. Bank Dho­far, which is third in terms of cap­i­tal­i­sa­tion af­ter Oman­tel, said that its net profit dur­ing the first nine months of the year in­creased to OMR35 mil­lion com­pared to OMR33.9 mil­lion in the cor­re­spond­ing pe­riod last year.

Oman­tel had not yet an­nounced its re­sults till the date of pub­lish­ing this re­port.

The value and vol­ume of trad­ing on MSM has been fluc­tu­at­ing this year with the high­est value of trad­ing (OMR154.9 mil­lion) reg­is­tered in May 2018 and the low­est value of trad­ing (OMR25.5 mil­lion) reg­is­tered in Au­gust.

Bank Mus­cat’s share of the value of trad­ing dur­ing the past months stood at 26 per cent (OMR10.4 mil­lion), fol­lowed by Oore­doo with 8.9 per cent (OMR3.6 mil­lion) and Bank Dho­far with 6.7 per cent (OMR2.7 mil­lion).

MSM in­dices went down­wards as the MSM30 de­clined by 2.6 per cent to close at 4,422 points, a de­cline by 120 points. This re­ces­sion comes af­ter two months from an in­crease by 124 points in Septem­ber and 82 points in Au­gust 2018.

The in­dus­try in­dex reg­is­tered the big­gest de­cline with 3.5 per cent to close at 5,337 points, a de­cline by 198 points. While the ser­vice sec­tor in­dex de­clined by 3 per cent, the Sharia mar­ket in­dex and the fi­nan­cial sec­tor in­dex de­clined by 1.8 per cent and 1.5 per cent re­spec­tively.

Last month, while the value of 12 se­cu­ri­ties was on the up­ward side, 48 se­cu­ri­ties were on the down­ward side and 23 se­cu­ri­ties re­mained un­changed. The big­gest in­crease was reg­is­tered by 47.5 per cent from 120 baisas to 189 baisas. This is the price de­fined by the com­pany for buy­ing the mi­nor­ity shares as part of their trans­for­ma­tion from a pub­lic joint stock com­pany to a closed joint stock com­pany.

The com­pany said that it has re­ceived ini­tial ap­proval from CMA on this con­ver­sion. It pointed out that Oman In­vest­ment Fund Hold­ing and Mid­dle East In­vest­ment Com­pany own 99.7 per cent of the com­pany shares and that the two com­pa­nies sup­port this trans­for­ma­tion. They un­der­took to buy the shares of the re­main­der share­hold­ers at OMR0.189 per share if they have the de­sire to sell their shares be­fore trans­form­ing into a closed joint stock com­pany.

While Dho­far In­sur­ance shares in­creased by 11.8 per cent to close at 160 baisas, the shares of So­har Power in­creased by 9.7 per cent from 113 baisas to 124 baisas.

Oman Qatar In­sur­ance shares in­creased by 7.8 per cent to close at 124 baisas. Izz Is­lamic Bank shares in­creased by 4.7 per cent to close at 89 baisas.

Full story @ time­so­fo­man.com/busi­ness

— File pic­ture

BIG DE­CLINE: The in­dus­try in­dex reg­is­tered the big­gest de­cline with 3.5 per cent to close at 5,337 points, a de­cline by 198 points.

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