MUSCAT: MSX30 Index ended the week lower by 1.77 per cent. All indexes ended the week lower. The financial Index closed lower by 1.23 per cent. Service index and industrial index ended lower by 0.55 per cent and 0.66 per cent respectively. The MSX Shariah Index closed lower by 2.61 per cent.
NBOB’s AGM approved issuance of $300m (or RO equivalent) worth of Tier 1 Perpetual Securities, to be executed over the next 5 years. This issuance may be listed on MSX (if in RO) or a regional or an international bourse. NBO’s CET1 ratio is relatively on the lower side as compared to its larger peers, while its Tier 1 Ratio is the lowest within the sector (weakened on a 6 per cent YoY expansion in risk-weighted assets (RWAs) during FY21). It would strengthen the bank’s balance sheet as well as its capital adequacy if it is able to raise this $300m. The bank had previously re-called its Tier 1 Perpetual Bonds issued in November 2015 during May 2021, while at the same time, it had issued $300m worth of Tier 1 Perpetual bonds in April 2021, thereby preserving its Tier 1 capital at end-FY21 as compared to end-FY20.
Bank Dhofar board of directors has resolved to cancel the brokerage licence, due to the low profit from this activity and the bank is in the process of taking the necessary action to cancel the service. Noting that the bank incurs various costs related to the brokerage unit, as the percentage of spending in this activity exceeds the profit from Brokerage. The Bank undertakes that the requirements related to cancelling the licence will be met and will settle any obligations that may appear in the future. The date of cancelling the activity will be disclosed after taking all necessary measures according to the guidelines of the Capital Market Authority.
Al Mouj Muscat has entered into a new partnership with ahlibank that provides finance on ready-to-move-in homes as well as those under construction at Oman’s premium lifestyle destination with the special arrangement marked today by an official signing ceremony. Ahlibank is a leading financial institution and Al Mouj Muscat is signing the new financing framework agreement with the bank to help property buyers obtain the financing they need to secure their dream home in Al Mouj Muscat.
Value of traded property in Oman went down by 23 per cent in February 2022 to RO 164.7m compared to RO 2,165m in February 2021. Traded value of mortgage contracts MoM went up by 6 per cent to RO 85m compared to RO 80m in same period. Traded value of sale contracts declined by 41 per cent to RO 79m compared to RO 134m YTD. Number of properties issued in February also declined by 18 per cent to 16,832 compared to 20,613 in January 2022.
In a sharp bounce back from the Covid-19 pandemic that had hit global trade hard in 2020, Oman’s non-oil exports shot up by more than 91 per cent in 2021, after economies reopened and global demand recovered from the recession. Total non-oil exports surged by 91.2 per cent to RO 5.792 bn in the full year 2021 from RO 3.032 bn recorded in the previous year, driven by increased demand from key markets in the region and around the world, according to data released by the National Centre for Statistics and Information (NCSI). As Oman’s economy reopened and returned to normalcy in 2021 after previous year’s twin-shock of oil price collapse and the coronavirus outbreak, the burgeoning demand for Omani exports suggests that the Sultanate of Oman's economy is well on a recovery path. Supported by strong recovery in oil prices and government’s economic stimulus measures, Oman’s nominal GDP grew at a solid pace of 16.1 per cent during 2021. (Courtesy: U-Capital)
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