Absence of catalysts and less result announcement led to marginal decline in the market. Volumes were relatively higher than last week while value traded was lower, indicating more trade in small to mid-cap stocks. The MSM30 ended the week down by 0.37 per cent at 3808.32. All sub-indices closed down except Services Index which was up by 0.19 per cent. Industrial & Financial Index closed down by 0.64 per cent and 0.28 per cent, respectively. MSM Shariah Index closed down by 0.74 per cent w-o-w.
The government of Oman is finalising a new Securities Law designed to stimulate the growth of a sound and vibrant securities market in the Sultanate. The proposed new law will authorise the rollout of a diverse range of instruments for trading and investment in the securities market. This would include derivatives such as swaps, forwards, futures, mortgage-backed securities and options, none of which are currently available for trading in Oman. The new law will also introduce Trusts as a vehicle for Collective Investment Schemes, which will allow greater flexibility in structuring and higher standards of governance to be implemented. Additionally, the new law will legalise crowdfunding as a means for small and medium enterprises (SMEs) to raise finance for their operations and growth. The new law is expected to be issued by the first quarter of 2020, if not earlier.
Petroleum Development Oman’s (PDO) Rabab Harweel Integrated Project (RHIP) has entered the start-up phase with gas production from the first sour wells, marking a key milestone for the mega project and coming two months ahead of schedule. RHIP is an integrated oil and gas development across the Rabab and Harweel reservoirs in southern Oman. It is the largest capital project in PDO’s history, representing a reserve add of more than 500m barrels of oil equivalent. PDO also announced its capital expenditure plan for 2019. PDO’s 2018 capital expenditure (capex) was $5.5bn and operating expenditure (opex) was $1.9bn, which includes more than $260m in total cumulative savings. For 2019, the current capital budget is $5.45bn, including approximately $68mn of expected initial savings in oil capex.
Total number of passenger at all airports of Oman rose in 5M-2019 to 7.22m compared to 6.78m in same period last year. The total number of passengers at Muscat International Airport rose by 7.8 per cent to 6.58m, over the same period of the previous year. The total number of passengers at Salalah Airport almost remained same at 0.51m. While, Suhar and Duqm witnessed a decline in passengers to 0.13m compared to 0.17m in 5M-18.
Oman National Engineering & Investment Company announced that Salalah Sanitary Drainage Company has extended agreement for billing and collection of sanitary drainage in Mazyoona and other Wilayat areas within the work zone against agreed commission for a period of two years commencing on 01/01/2020.
Al Kamil Power announced the following in its 1Q19 financial report:
n During the three months of the current year the plant achieved a commercial availability of 99.98 per cent compared to 100 per cent in the same period last year.
n The electricity exported in 1Q2019 was lower than the electricity exported in the same period last year.
n Revenue of 1Q2019 stood at RO1.91m compared to RO1.97m in 1Q2018
n The company posted a net profit of RO1.80m in current year compared to RO 0.43m during the same period last year.
n On the tax litigation the supreme court, vide its decision dated January 15, 2019, issued a final judgement for the years 2008 to 2012 deciding to overrule the appeals court and confirmed the company’s right to indefinitely carry forward the losses incurred during the exemption period until its final settlement. By virtue of this decision, the company has recognised in the financial statements the recovery of the additional tax paid earlier amounting to RO1.35m due to disallowance of carry forward losses.
n The company is participating in OPWP’s power 2022 procurement tender process for possible extension of PPA beyond 2021.
Galfar announced that the Company has executed the SPA with PMA International for sale of Company’s investment in India for a sum of RO 17.2m. The key terms of the preliminary agreement as per 1Q19 report were:
n Post obtaining necessary approvals, on execution of the Share Purchase Agreement, the buyer would pay 10 per cent of the consideration.
n Remaining 90 per cent would be paid in 4 equal half-yearly instalments secured by way of post-dated cheques / corporate guarantee / pledge of the Parent Company’s shares held by the related parties.
n Deferred consideration would carry an interest @ 5 per cent per annum.
Among GCC markets, Oman was the only market which closed down by 0.37 per cent while all other markets ended positive led by Kuwait Bourse at 2.97 per cent.
GCC region attracted net foreign investment in stock worth $16.95bn in 1H19. Majority of the investment flew into the countries which are either upgraded or in the process of getting upgraded to emerging markets. — Courtesy: U-Capital
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