MSX closes the week lower
Published: 02:04 PM,Apr 23,2022 | EDITED : 06:04 PM,Apr 23,2022
MUSCAT: MSX30 Index ended the week lower by 0.09 per cent. The Financial Index closed lower by 0.48 per cent while the Industrial Index ended lower by 0.68 per cent. The Services Index ended higher by 0.38 per cent. The MSX Shariah Index closed lower by 0.13 per cent.
The Capital Market Authority (CMA) is preparing to authorise the use of ‘short selling’ for the first time in the Sultanate of Oman — one of a raft of initiatives aimed at attracting new market makers as well as boosting liquidity in the nation’s capital market. Commonly practised in bourses around the world, but hitherto barred in the Sultanate of Oman, short selling is an investment or trading strategy that speculates on the decline in a stock or other security's price. Typically, investors sell stocks they have borrowed from a lender on the expectation the price will drop. The hope is to rebuy and replace the stocks they borrowed at a lower price. The difference between the price they sell the stock at, and the price they buy back the stock at, is the profit, say experts.
Locally, the earnings season ended, even though Omantel is yet to report its initials for 1Q22. The combined net profits of MSX-listed companies grew by about 4 per cent YoY during 1Q22 to about RO 143m. On sector-wise basis, the Financial Sector showed a YoY growth of about 14 per cent while the Services Sector posted a 50 per cent YoY growth in combined net profits of the companies compared to 1Q22 and supported the combined net profits of the stock market.
The Industrial sector, however, saw a drop of 70 per cent YoY in its combined net profits, largely due to a significant drop in Food & Beverage sub-sector (-76 per cent YoY) and the Electrical & Mechanical sub-sector (-69 per cent YoY), while the Cement and Engineering & Construction sub-sectors turned to combined losses for the quarter.
The largest improvement in combined net profits within the Financial Sector was witnessed by the Investment & Brokerage sub-sector (+86 per cent YoY or RO 6.9m). The banking and leasing sub-sectors saw continued recovery in their combined net profits on the back of lower provision expenses this year as compared to last year, further supported by rise in operating income of most banks. The insurance sub-sector, however, continues to be plagued by pandemic-related issues. The combined net profit of the insurance sector fell 4 per cent YoY.
The Energy sub-sector posted an increase in combined net profit of RO 2.1m, or 72 per cent YoY while the Tourism & Hospitality sub-sector also posted an increase in its combined net profit worth RO 1.68m or 145 per cent YoY.
The Food & Beverage Industry posted a decline of RO 7.3m in their combined net profits in 1Q22 as compared to 1Q21. This is primarily due to YoY net profit declines of Oman Flour Mills, Salalah Mills and Dhofar Poultry, likely on elevated global wheat prices, which are up about 63 per cent since end-Dec’21.
Most of the sub-sectors have witnessed recovery on quarter-on-quarter (QoQ) basis during 1Q22, except for a few from the Industrial Sector. Overall, the combined net profit of MSX-listed companies is up over two-fold on QoQ basis.
[Courtesy: U-Capital]
The Capital Market Authority (CMA) is preparing to authorise the use of ‘short selling’ for the first time in the Sultanate of Oman — one of a raft of initiatives aimed at attracting new market makers as well as boosting liquidity in the nation’s capital market. Commonly practised in bourses around the world, but hitherto barred in the Sultanate of Oman, short selling is an investment or trading strategy that speculates on the decline in a stock or other security's price. Typically, investors sell stocks they have borrowed from a lender on the expectation the price will drop. The hope is to rebuy and replace the stocks they borrowed at a lower price. The difference between the price they sell the stock at, and the price they buy back the stock at, is the profit, say experts.
Locally, the earnings season ended, even though Omantel is yet to report its initials for 1Q22. The combined net profits of MSX-listed companies grew by about 4 per cent YoY during 1Q22 to about RO 143m. On sector-wise basis, the Financial Sector showed a YoY growth of about 14 per cent while the Services Sector posted a 50 per cent YoY growth in combined net profits of the companies compared to 1Q22 and supported the combined net profits of the stock market.
The Industrial sector, however, saw a drop of 70 per cent YoY in its combined net profits, largely due to a significant drop in Food & Beverage sub-sector (-76 per cent YoY) and the Electrical & Mechanical sub-sector (-69 per cent YoY), while the Cement and Engineering & Construction sub-sectors turned to combined losses for the quarter.
The largest improvement in combined net profits within the Financial Sector was witnessed by the Investment & Brokerage sub-sector (+86 per cent YoY or RO 6.9m). The banking and leasing sub-sectors saw continued recovery in their combined net profits on the back of lower provision expenses this year as compared to last year, further supported by rise in operating income of most banks. The insurance sub-sector, however, continues to be plagued by pandemic-related issues. The combined net profit of the insurance sector fell 4 per cent YoY.
The Energy sub-sector posted an increase in combined net profit of RO 2.1m, or 72 per cent YoY while the Tourism & Hospitality sub-sector also posted an increase in its combined net profit worth RO 1.68m or 145 per cent YoY.
The Food & Beverage Industry posted a decline of RO 7.3m in their combined net profits in 1Q22 as compared to 1Q21. This is primarily due to YoY net profit declines of Oman Flour Mills, Salalah Mills and Dhofar Poultry, likely on elevated global wheat prices, which are up about 63 per cent since end-Dec’21.
Most of the sub-sectors have witnessed recovery on quarter-on-quarter (QoQ) basis during 1Q22, except for a few from the Industrial Sector. Overall, the combined net profit of MSX-listed companies is up over two-fold on QoQ basis.
[Courtesy: U-Capital]