MUSCAT, JUNE 10 - Companies listed on the Muscat Securities Market (MSM) distributed RO 415 million in dividends to their shareholders for 2018, representing a 13 per cent increase over the corresponding figure for 2017, according to the Capital Market Authority (CMA). As many as 63 listed companies disbursed dividends for 2018, the CMA said in its newly published Annual Report for the year. Eight companies distributed bonus shares and cash dividends, while only one firm handed out bonus shares.
Significantly, the cash dividends represented 51 per cent of the net profits of public joint stock companies, which totalled around RO 820 million last year, up from RO 615 million in 2017 — entailing a growth of 33 per cent, the Authority said. A total of 110 public joint stock companies were listed on the Muscat bourse as of end-2019, with 102 of them having the financial year ending on December 31.
The positive performance of the Omani bourse despite relatively subdued economic sentiment locally and globally is attributable to a number of factors, according to a well-established market analyst.
Hettish Karmani, Head of Research at U-Capital, explained: “In 2017, the (amended) income tax was introduced starting with a low base. This, combined with significantly higher oil prices in 2018, helped bolster government revenues, thereby buoying the economy. This upturn in revenues helped boost the banking sector in particular, which performed well and posted higher profitability in 2018. There was also the question of the interest rate rise by the US Fed, which is tracked by GCC countries, including Oman. With the rate rise, Omani banks were able to increase their spreads, ultimately boosting their income and profitability.”
The capital of companies listed on the MSM totalled RO 6.34 billion at the end of 2018. While public joint stock companies contributed RO 3.19 billion in capital, the balance RO 3.15 billion came in the form of corporate and government bonds, and Sukuk, according to the CMA.
The benchmark MSM 30 Index closed the year at 4323.740, slumping 15.21 per cent (775.54 points) in comparison with levels a year earlier. Trading values fell 23.17 per cent to RO 763 million, down from RO 995 million at the end of 2017. Market capitalisation, however, inched up 1.26 per cent to RO 18.18 billion.
The bourse’s performance was consistent with trends in emerging and global markets, the CMA stated. TURN TO PAGE 15
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