MSX closes the week lower
Published: 03:06 PM,Jun 25,2022 | EDITED : 07:06 PM,Jun 25,2022
MUSCAT: MSX30 Index ended the week lower by 0.18 per cent. The financial index was the only index ending higher by 0.91 per cent. The Industrial Index and Services index closed lower by 1.27 per cent and 2.19 per cent respectively. The MSX Shariah Index closed down by 0.82 per cent.
Sohar International Bank (BKSB) disclosed on MSX that it has sent a letter of intent to the Board of HSBC Oman (HBMO) on June 15, 2022, proposing a merger of the two banks. Additionally, BKSB announced that its due diligence process for merger with Bank Nizwa (BKNZ) (talks that began in November last year and CBO’s approval for due diligence received in January this year). Given the bank’s intent to grow inorganically to become the second-largest bank of Oman, this new capital is expected to be deployed to fund the mergers as well as preserve the bank’s capital adequacy metrics. If the two mergers go through successfully, then the combined entity is expected to surpass Bank Dhofar (BKDB) in its asset size (as of 1Q22) at RO 8.06 bn to become the second-largest bank of Oman in terms of total assets, after Bank Muscat (BKMB) that had total assets of RO 12.8 bn at end-1Q22. If only BKSB and HBMO combine, then the total assets of the combined entity will be RO 6.6 bn. If only BKSB and BKNZ combine, then the total assets of the combined entity will be RO 5.6 bn, still larger than BKDB.
Oman Telecom Sector Data for May reveals that fixed line subscribers are down 1.6 per cent while mobile subscribers are up 3.5 per cent YoY. Within mobile, prepaid subscribers are down 1.4 per cent while postpaid subscribers are higher by 24.3 per cent YoY. Active Mobile broadband subscribers are up by 6.2 per cent. Penetration levels are higher at the end of May 2022 as compared to May 2021.
The total number of vehicles registered in the Sultanate of Oman were at 1.568m in May 2022, representing an increase over April 2022 registered vehicles at 1.565m.
Total public revenues climbed 28.7 per cent to reach RO 10.9 billion at end of 2021, up from RO 8.5 billion at the end of 2020, while total public spending fell by 5.9 per cent to RO 12.2 billion for the same period, according to the National Centre for Statistics and Information (NSCI). The State Budget recorded a deficit of RO 1.2 billion in 2021, equivalent to 3.7 per cent of GDP at current prices. In other data released by the Centre, the value of GDP at current prices increased by about 16.1 per cent by the end of 2021 to reach RO 33 billion, compared to about RO 28.4 billion by the end of 2020. The increase stemmed from a 39.7 per cent increase in the price of oil, from $46 per barrel by the end of 2020 to $64.3 per barrel by the end of 2021.
The inflation rate in the Sultanate of Oman rose by 2.4 per cent in May 2022 compared to May 2021. The inflation rate stabilised compared to April 2022, according to the latest data from the National Centre for Statistics and Information (NCSI). The data indicate that the rise in the food prices index in May 2022 is attributed to increases in the prices of main groups, such as education by 5.1 per cent, food and non-alcoholic beverages by 5 per cent, transport by 3.5 per cent, health by 2.8 per cent, miscellaneous goods and services by 1.5 per cent, recreation and culture by 1.5 per cent, restaurants and hotels by 1.3 per cent, furniture, household equipment and routine household maintenance by 0.7 per cent, housing, water, electricity, gas and other fuels by 0.7 per cent and clothing and footwear by 0.4 per cent. Meanwhile, the tobacco group declined by 0.1 per cent. [Courtesy: U-Capital]
Sohar International Bank (BKSB) disclosed on MSX that it has sent a letter of intent to the Board of HSBC Oman (HBMO) on June 15, 2022, proposing a merger of the two banks. Additionally, BKSB announced that its due diligence process for merger with Bank Nizwa (BKNZ) (talks that began in November last year and CBO’s approval for due diligence received in January this year). Given the bank’s intent to grow inorganically to become the second-largest bank of Oman, this new capital is expected to be deployed to fund the mergers as well as preserve the bank’s capital adequacy metrics. If the two mergers go through successfully, then the combined entity is expected to surpass Bank Dhofar (BKDB) in its asset size (as of 1Q22) at RO 8.06 bn to become the second-largest bank of Oman in terms of total assets, after Bank Muscat (BKMB) that had total assets of RO 12.8 bn at end-1Q22. If only BKSB and HBMO combine, then the total assets of the combined entity will be RO 6.6 bn. If only BKSB and BKNZ combine, then the total assets of the combined entity will be RO 5.6 bn, still larger than BKDB.
Oman Telecom Sector Data for May reveals that fixed line subscribers are down 1.6 per cent while mobile subscribers are up 3.5 per cent YoY. Within mobile, prepaid subscribers are down 1.4 per cent while postpaid subscribers are higher by 24.3 per cent YoY. Active Mobile broadband subscribers are up by 6.2 per cent. Penetration levels are higher at the end of May 2022 as compared to May 2021.
The total number of vehicles registered in the Sultanate of Oman were at 1.568m in May 2022, representing an increase over April 2022 registered vehicles at 1.565m.
Total public revenues climbed 28.7 per cent to reach RO 10.9 billion at end of 2021, up from RO 8.5 billion at the end of 2020, while total public spending fell by 5.9 per cent to RO 12.2 billion for the same period, according to the National Centre for Statistics and Information (NSCI). The State Budget recorded a deficit of RO 1.2 billion in 2021, equivalent to 3.7 per cent of GDP at current prices. In other data released by the Centre, the value of GDP at current prices increased by about 16.1 per cent by the end of 2021 to reach RO 33 billion, compared to about RO 28.4 billion by the end of 2020. The increase stemmed from a 39.7 per cent increase in the price of oil, from $46 per barrel by the end of 2020 to $64.3 per barrel by the end of 2021.
The inflation rate in the Sultanate of Oman rose by 2.4 per cent in May 2022 compared to May 2021. The inflation rate stabilised compared to April 2022, according to the latest data from the National Centre for Statistics and Information (NCSI). The data indicate that the rise in the food prices index in May 2022 is attributed to increases in the prices of main groups, such as education by 5.1 per cent, food and non-alcoholic beverages by 5 per cent, transport by 3.5 per cent, health by 2.8 per cent, miscellaneous goods and services by 1.5 per cent, recreation and culture by 1.5 per cent, restaurants and hotels by 1.3 per cent, furniture, household equipment and routine household maintenance by 0.7 per cent, housing, water, electricity, gas and other fuels by 0.7 per cent and clothing and footwear by 0.4 per cent. Meanwhile, the tobacco group declined by 0.1 per cent. [Courtesy: U-Capital]