MSX closes week lower as global inflation spurs interest rate rise
Published: 01:06 PM,Jun 18,2022 | EDITED : 05:06 PM,Jun 18,2022
MUSCAT: MSX30 Index ended the week lower by 0.30 per cent. The financial index was the only index ending higher by 0.08 per cent. The Industrial Index and Services index closed lower by 1.71 per cent and 0.17 per cent respectively. The MSX Shariah Index closed down by 0.71 per cent.
Further to the disclosures made by Sohar International Bank, on November 23, 2021, January 19, 2022 and following the recent announcement of Letter of Intent (LOI) sent to HSBC Bank Oman SAOG, the board of directors of Sohar International Bank SAOG (SI) has noted that the proposed merger process with Bank Nizwa SAOG is still in progress, as announced earlier. Each of the proposed merger transactions with Bank Nizwa SAOG and HSBC Bank Oman SAOG are subject to regulatory and shareholders' approval, it said.
ahlibank announced during the week that it has launched its first-of-its-kind ‘Tamkeen’ crowdfunding initiative. The crowdfunding initiative is part of ahlibank’s endeavour to support Oman’s small and medium enterprises (SMEs) and bolster the national economy. This pioneering initiative comes after signing a strategic partnership agreement between ahlibank and Beehive to offer this unique online financial lending solution in Oman, specifically for the SMEs to support their business endeavours and create a sustainable ecosystem.
Takaful Oman Insurance SAOG has successfully completed the Rights Issue of 150,000,000 shares. All shares have been allotted to the successful subscribers following the CMA approval. Further, pursuant to the Muscat Stock Exchange (MSX) Administrative Decision 66/2022, the additional shares were listed on the MSX from Tuesday. The Company's issued share capital post Rights Issue will be RO 16 million divided into 250 million shares.
In Oman, inflation turned positive in 2021 due to introduction of VAT as well as recovery in consumer spending when vaccination rates started increasing in the country and the economy re-opened. Recent NCSI data shows that inflation decreased to 2.67 per cent in April 2022 from 3.6 per cent in March 2022. Annual inflation was recorded at 4.0 per cent in February and 4.4 per cent in January this year. However, consumer price inflation for food and non-alcoholic beverages group, which has nearly 24 per cent weight in Oman’s CPI, rose to 5.43 per cent in April 2022 compared April 2021. Global food prices have been soaring fast since the beginning of Russia’s invasion of Ukraine. Since Oman needs to import most of the food materials from international markets, rising global prices directly affect the prices in the local market. On the other hand, prices in the housing, water, electricity, gas, and other fuels group – which has over 26 per cent weight in Oman’s CPI – increased only by 2 per cent in April this year compared to April 2021. This could potentially be due to Government subsidies on these items, especially with a ceiling on fuel price. Prices in the transport group – which has more than 19 per cent weight in CPI – increased by 2.4 per cent in Apr’22 compared the same month a year ago. Oman’s annual inflation rate has first time dropped below 3 per cent level since October last year. Nevertheless, the IMF expects Oman’s inflation to peak to 3.7 per cent in 2022 before falling to 1.9 per cent by 2025.
[Courtesy: U-Capital]
Further to the disclosures made by Sohar International Bank, on November 23, 2021, January 19, 2022 and following the recent announcement of Letter of Intent (LOI) sent to HSBC Bank Oman SAOG, the board of directors of Sohar International Bank SAOG (SI) has noted that the proposed merger process with Bank Nizwa SAOG is still in progress, as announced earlier. Each of the proposed merger transactions with Bank Nizwa SAOG and HSBC Bank Oman SAOG are subject to regulatory and shareholders' approval, it said.
ahlibank announced during the week that it has launched its first-of-its-kind ‘Tamkeen’ crowdfunding initiative. The crowdfunding initiative is part of ahlibank’s endeavour to support Oman’s small and medium enterprises (SMEs) and bolster the national economy. This pioneering initiative comes after signing a strategic partnership agreement between ahlibank and Beehive to offer this unique online financial lending solution in Oman, specifically for the SMEs to support their business endeavours and create a sustainable ecosystem.
Takaful Oman Insurance SAOG has successfully completed the Rights Issue of 150,000,000 shares. All shares have been allotted to the successful subscribers following the CMA approval. Further, pursuant to the Muscat Stock Exchange (MSX) Administrative Decision 66/2022, the additional shares were listed on the MSX from Tuesday. The Company's issued share capital post Rights Issue will be RO 16 million divided into 250 million shares.
In Oman, inflation turned positive in 2021 due to introduction of VAT as well as recovery in consumer spending when vaccination rates started increasing in the country and the economy re-opened. Recent NCSI data shows that inflation decreased to 2.67 per cent in April 2022 from 3.6 per cent in March 2022. Annual inflation was recorded at 4.0 per cent in February and 4.4 per cent in January this year. However, consumer price inflation for food and non-alcoholic beverages group, which has nearly 24 per cent weight in Oman’s CPI, rose to 5.43 per cent in April 2022 compared April 2021. Global food prices have been soaring fast since the beginning of Russia’s invasion of Ukraine. Since Oman needs to import most of the food materials from international markets, rising global prices directly affect the prices in the local market. On the other hand, prices in the housing, water, electricity, gas, and other fuels group – which has over 26 per cent weight in Oman’s CPI – increased only by 2 per cent in April this year compared to April 2021. This could potentially be due to Government subsidies on these items, especially with a ceiling on fuel price. Prices in the transport group – which has more than 19 per cent weight in CPI – increased by 2.4 per cent in Apr’22 compared the same month a year ago. Oman’s annual inflation rate has first time dropped below 3 per cent level since October last year. Nevertheless, the IMF expects Oman’s inflation to peak to 3.7 per cent in 2022 before falling to 1.9 per cent by 2025.
[Courtesy: U-Capital]