MSX ends week lower by 0.64 per cent
Published: 01:09 PM,Sep 18,2021 | EDITED : 05:09 PM,Sep 18,2021
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The MSX30 Index ended the week down by 0.64 per cent. The industrial Index was the only sector that rose for the week by 0.69 per cent. The Services Index and Financial index fell by 1.16 per cent and 0.92 per cent, respectively. MSX Shariah Index closed down by 1.22 per cent.
Oman's fiscal deficit and debt are expected to decline sharply after spiking last year, the International Monetary Fund (IMF) said last week, as the Oman implements a medium-term recovery plan. The fiscal deficit is set to decrease to 2.4 per cent of gross domestic product this year from 19.3 per cent of gross domestic product (GDP) in 2020, and the country is expected to switch to a surplus in 2022. Central government debt rose to 81.2 per cent of GDP (in 2020). Total government debt is expected to decrease to 70.7 per cent of GDP this year and to decline further until about 47 per cent of GDP in 2026.
Other important developments outlined by IMF are: The authorities and staff agreed that the exchange rate peg remains an appropriate policy anchor, delivering low and stable inflation; The authorities have started implementing the planned structural reforms under Oman Vision 2040 to boost non-oil private sector growth and support external sustainability; The OIA’s plan to enhance the efficiency and governance of SOEs and privatise some is progressing well; and Banks’ capital adequacy ratios averaged 18.5 per cent and the Liquidity Coverage Ratio was 199 per cent at end-March 2021, comfortably above regulatory minima.
“We at U-Capital believe that the Medium-Term Fiscal Plan alongside other economic policies, will reduce dependency on oil revenue, ensure debt sustainability, enhance the social safety net, and strengthen public financial management. Oman is also working on improving its ranking on doing business in the country which will facilitate and aid in bringing in more foreign direct investment in the country. Also, at the current moment oil prices are pretty supportive and are expected to remain close/above $60/bbl. in the next 3-4 years which gives Oman a good window to diversify its revenue base,” U-Capital said in its weekly advisory.
The impact of an upbeat report by the IMF was seen in the bond market as well as in the price of Oman Sovereign Dollar bond, which continued to rise this week. The yield on 10-year $ bond which used to be closer to 6 per cent a couple of months ago has come down to 4.88 per cent (on September 16). The lower yield and consequently the risk-free rate aids in improving the valuation of the stocks listed on the capital market as well.
The Capital Market Authority (CMA) issued licenses for four Health Insurance Third Party Administrators (TPAs) up to the end of June this year. This is to enhance the regulatory aspect of the health insurance market in the Sultanate for their roles in claims administration and compensation evaluation between health service providers and health insurance policyholders. CMA issued the regulation for practising the business of TPAs last year which is a step forward in the regulatory process of the health insurance sector in Oman. TPAs administer the medical expenses, claims management, payment and render support for health insurance policyholders.
The value of traded property in Oman went up by 28.8 per cent in 7M/2021 to RO 1,560 million compared to RO 1,212 million in 7M/2020. The traded value of mortgage contracts during the same period went up by 19.6 per cent to RO 861 million compared to RO 720 million in same period last year. Traded value of sale contracts rose by 55.1 per cent to RO 687 million compared to RO 443 million in 7M/2020. Number of properties issued during 7M/2021 also rose by 55.7 per cent to 144.670K compared to 92.929k in 7M/2020.
OPEC-13 crude oil production averaged 26.76 mb/d in August 2021, higher by 0.15 mb/d m-o-m. Crude oil output increased mainly in Iraq, Saudi Arabia, the UAE and Angola, while production decreased primarily in Nigeria. The share of OPEC crude oil in total global production increased by 0.2 percentage points to 28.0 per cent in August compared with the previous month.
(Courtesy U-Capital)
Oman's fiscal deficit and debt are expected to decline sharply after spiking last year, the International Monetary Fund (IMF) said last week, as the Oman implements a medium-term recovery plan. The fiscal deficit is set to decrease to 2.4 per cent of gross domestic product this year from 19.3 per cent of gross domestic product (GDP) in 2020, and the country is expected to switch to a surplus in 2022. Central government debt rose to 81.2 per cent of GDP (in 2020). Total government debt is expected to decrease to 70.7 per cent of GDP this year and to decline further until about 47 per cent of GDP in 2026.
Other important developments outlined by IMF are: The authorities and staff agreed that the exchange rate peg remains an appropriate policy anchor, delivering low and stable inflation; The authorities have started implementing the planned structural reforms under Oman Vision 2040 to boost non-oil private sector growth and support external sustainability; The OIA’s plan to enhance the efficiency and governance of SOEs and privatise some is progressing well; and Banks’ capital adequacy ratios averaged 18.5 per cent and the Liquidity Coverage Ratio was 199 per cent at end-March 2021, comfortably above regulatory minima.
“We at U-Capital believe that the Medium-Term Fiscal Plan alongside other economic policies, will reduce dependency on oil revenue, ensure debt sustainability, enhance the social safety net, and strengthen public financial management. Oman is also working on improving its ranking on doing business in the country which will facilitate and aid in bringing in more foreign direct investment in the country. Also, at the current moment oil prices are pretty supportive and are expected to remain close/above $60/bbl. in the next 3-4 years which gives Oman a good window to diversify its revenue base,” U-Capital said in its weekly advisory.
The impact of an upbeat report by the IMF was seen in the bond market as well as in the price of Oman Sovereign Dollar bond, which continued to rise this week. The yield on 10-year $ bond which used to be closer to 6 per cent a couple of months ago has come down to 4.88 per cent (on September 16). The lower yield and consequently the risk-free rate aids in improving the valuation of the stocks listed on the capital market as well.
The Capital Market Authority (CMA) issued licenses for four Health Insurance Third Party Administrators (TPAs) up to the end of June this year. This is to enhance the regulatory aspect of the health insurance market in the Sultanate for their roles in claims administration and compensation evaluation between health service providers and health insurance policyholders. CMA issued the regulation for practising the business of TPAs last year which is a step forward in the regulatory process of the health insurance sector in Oman. TPAs administer the medical expenses, claims management, payment and render support for health insurance policyholders.
The value of traded property in Oman went up by 28.8 per cent in 7M/2021 to RO 1,560 million compared to RO 1,212 million in 7M/2020. The traded value of mortgage contracts during the same period went up by 19.6 per cent to RO 861 million compared to RO 720 million in same period last year. Traded value of sale contracts rose by 55.1 per cent to RO 687 million compared to RO 443 million in 7M/2020. Number of properties issued during 7M/2021 also rose by 55.7 per cent to 144.670K compared to 92.929k in 7M/2020.
OPEC-13 crude oil production averaged 26.76 mb/d in August 2021, higher by 0.15 mb/d m-o-m. Crude oil output increased mainly in Iraq, Saudi Arabia, the UAE and Angola, while production decreased primarily in Nigeria. The share of OPEC crude oil in total global production increased by 0.2 percentage points to 28.0 per cent in August compared with the previous month.
(Courtesy U-Capital)