MSX ends week higher, supported by all sectors

MUSCAT: MSX30 Index ended the week higher by 2.34 per cent. All sub-indices ended green for the week. Financial index closed up by 2.11 per cent. Industrial & service Index also closed higher by 1.70 per cent and 1.84 per cent. MSX Shariah Index closed higher by 1.68 per cent.

One of the important news developments of the week was that Fitch Ratings Revised Oman's Outlook to Stable and affirmed its Rating at ‘BB-’ The revision of the Outlook reflects actual improvements in, and the expected evolution of, key fiscal metrics including government debt/GDP and the budget deficit, driven by higher oil prices and fiscal reforms, and a lessening of external financing pressures relative to recent years even as external funding needs remain high.

Renaissance Services disclosed on the bourse that MEDC Awards 3-Year Contract to Tawoos Industrial Services, for the installation of Smart Meters across all three zones of the Muscat Governorate. The project was awarded by Muscat Electricity Distribution Company (MEDC). The value of the contract is RO 9.3 million. The scope includes rollout of more than 400,000 smart meters across all three zones of the Muscat Governorate. The duration of the project is three years starting from January 2022. Earlier, Sultanate of Oman announced that it is undertaking a 1.2 million smart meter rollouts nationwide over the next five years.

Energy Development Oman (EDO) SAOC announced that it has launched its new brand identity by unveiling its corporate vision and logo. The company was set up in Muscat in December 2020 to take over the Government's 60 per cent stake in PDO’s Block 6 oil and associated gas, and 100 per cent in PDO’s Block 6 non-associated gas and condensate. PDO continues to operate Block 6, and EDO, through PDO, is responsible for the bulk of the Sultanate of Oman's hydrocarbon output.

CBO’s latest statistics show that conventional banking credit rose to RO 22,996 million as at the end of Oct’21, rising by 3.4 per cent YoY and 0.1 per cent MoM. On year-to-date (YTD) basis, conventional credit is up 2.9 per cent. Conventional deposits have grown to RO 20,945 million, rising by 2.9 per cent YoY and 1.1 per cent MoM. On YTD basis, deposits have grown by 2.0 per cent. Loan to Deposit ratio stood at 109.8 per cent vs. 109.2 per cent a year ago.

Islamic credit growth remained strong on yearly basis at 15.5 per cent YoY in Oct’21, with total financing extended by Islamic banks and windows touching RO 4,771 million, rising by 0.8 per cent MoM. Islamic deposits stood at RO 4,344 million, rising by 18.9 per cent YoY and 2.9 per cent MoM. Islamic Financing to Deposit ratio stood at 109.8 per cent vs. 115.1 per cent a year ago.

Total credit & Islamic financing stood at RO 27,767 million, up by 5 per cent YoY, 0.3 per cent MoM and 4.0 per cent YTD. Private sector lending stood at 84.3 per cent of total, rising by 2.4 per cent YoY and 0.2 per cent MoM. Total deposits of conventional and Islamic institutions stood at RO 25,290 million, rising by 5.3 per cent YoY, 1.3 per cent MoM and 3.9 per cent YTD. Total Loan to deposit ratio stood at 109.8 per cent.

During the week, the Public Establishment for Industrial Estates (Madayn) announced the launch of Madayn Investment Complexes which will provide an ideal opportunity for local and foreign companies to invest in Oman’s industrial cities. Under the Madayn Investment Complexes project, companies shall develop specialized investment complexes through their real estate plans, and the designs shall be approved by Madayn, according to Hilal bin Hamad al Hasani, CEO of Madayn.

Further, it was announced that the proliferation of private individuals offering financial advisory services to investors on an informal basis is sought to be regulated by the Capital Market Authority (CMA) of the Sultanate of Oman.

Draft regulations, titled ‘Rules for Independent Financial Planners (IFPs), were published by the Authority last week with the goal of eliciting feedback from market stakeholders and members of the general public. The goal, say officials, is to create a regulatory framework to support the growth of a cadre of qualified private professionals offering financial advisory services outside of the scope of well-established and regulated corporate service providers. [Courtesy: U-Capital]