MUSCAT: MSX30 Index ended the week lower by 0.29 per cent. The financial index closed lower by 0.77 per cent. Industrial index and service index was up for the week by 0.74 per cent and 0.28 per cent respectively. The MSX Shariah index closed lower by 0.56 per cent.
National Gas has informed its shareholders that due to the recent pandemic effects and substantial escalation in the steel prices and construction costs, it is envisaged that the India LPG terminal project cost could escalate. In the shareholders' interest, the Company has been in negotiations for the divestment of its entire 60 per cent share in the project. The Company has been able to conclude the negotiations and is pleased to inform the shareholders that the divestment would be at a premium that would result in a gross profit of $3.5 million (RO 1.35 million). The gross proceeds that the Company expects to receive is — RO 6.24 million. The Company intends to pay off its loans with the proceeds and will be able to consolidate and strengthen its balance sheet for future expansion and growth purposes. The transaction is expected to take 2-3 months to close.
The Board of Directors of the Financial Corporation Company SAOG has decided to cancel the activity of issues management, due to the failure to meet the minimum number of employees required for the aforementioned activity according to the requirements of the Capital Market Authority. The company undertakes that there are no obligations related to the licence to be deleted and pledges to settle any obligations that may appear in the future
As per the CBO, Oman's narrow money supply (M1) grew in Dec’21 by 1.3 per cent MoM and 3.3 per cent YoY. The MoM expansion was due to an increase in Demand Deposits of 2.2 per cent despite currency outside commercial banks contracting by 1.4 per cent MoM. Broad money (M2) supply also increased by 0.6 per cent MoM and 4.6 per cent YoY. YoY increase was led by a 5.1 per cent rise in Quasi Money. While on monthly basis, domestic liquidity increased by about RO 117 m. On YoY basis, M2 is up RO 895m.
CBO's foreign assets which include bullion, IMF reserve assets, placements abroad and foreign securities, rose to RO 7.6 bn as at the end of Dec’21, having increased by 32 per cent YoY and 1.4 per cent MoM. CBO's foreign assets grew at the strongest pace on record during Dec’21, rising by RO 100m during the month and by RO 1.8 bn during the year 2021. The MoM increase is brought about by a 1.6 per cent MoM rise in placements abroad (which account for 54 per cent of the total foreign assets), a 1.3 per cent MoM increase in securities held (41 per cent of total), and despite a marginal MoM decrease recorded in IMF reserve assets, while bullion stayed flat. CBO's foreign assets are notably above the trailing 12-month simple average of RO 7 bn.
The RO overnight domestic inter-bank lending rate fell to 0.413 per cent in Nov’21 compared to 0.948 per cent in Nov’20. The rate has been roughly on a downtrend since the Fed funds rate cuts began in 2019 and increased slightly during Jun'20 before easing again in July’20. It was beginning to creep up once again in Oct’20 and Nov’20 but has been contracting since Dec’20, with a slight upward blip seen in May’21. It is now well below the peak seen in Mar’20 at 2.088 per cent. Furthermore, overnight interbank lending amount touched RO 23.9m in Nov’21, up by 29 per cent YoY and down by 14 per cent MoM. [Courtesy: U-Capital]
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