MSX 30 Index dips 0.35%

MUSCAT: MSX30 Index ended the week down by 0.35%. The Financial Index ended the week lower by 0.81%. The Services Index ended the week higher by 0.08%. The Industrial index also closed higher by 0.22%. The MSX Shariah Index closed up by 0.46%.

During the week, Sohar International Bank announced that it has completed its rights issue for RO 160 million that is expected to support its ongoing merger talks with HSBC Oman and Bank Nizwa. The issued share capital post-issuance of new shares will be RO 455 million.

BankDhofar announced that it has successfully raised RO 115.5 million Basel III compliant Additional Tier 1 (AT1) bond listed on the Muscat Stock Exchange. This is the largest RO AT1 single tranche offering by any bank in Oman. The issue attracted a high-quality order book with strong participation from local investors that allowed BankDhofar to set the yield at 6.75%. This issue will benefit BankDhofar’s already strong Tier I capital base. The offering was well received by a diverse set of investors consisting of pension and sovereign wealth funds, corporates, family offices and high net worth individuals.

Earnings season was in full swing on MSX last week, with most companies reporting their 9M22 financial results by the end of the week. Our analysis reveals that the combined net profit of companies listed on the MSX rose by 10% YoY for 9M22 to reach RO 434 million. It must be noted that holding companies still have time to disclose their initial financial results for this period. Within the three sectors, the Industrial sector has posted the largest increase in it combined net profits for 9M22, at 31% YoY to reach RO 21.5 million, followed by the financial sector, which has posted a growth of 13% YoY to reach RO 319 million . The Services sector has posted a decline of 2%, primarily led by some utilities sector companies, however, Omantel and some other companies are yet to report their initial results.

The total number of Small and Medium Enterprises (SMEs) registered in the Authority for Small and Medium Enterprises Development increased by 46.3% in July 2022 compared to the same period 2021 to reach 80,077 compared to 54,726 end-June 2021, according to the data released by the National Centre for Statistics and Information (NCSI). Among the governorates, the Governorate of Muscat topped the list by reaching 26,990 enterprises, comprising a rise of 46.2%, followed by the Governorate of North Al Batinah with 12,317 enterprises, comprising an increase by 42.5%, the Governorate of A’Dakhiliyah with 8,995, going up 33.1% and the Governorate of Dhofar by 8,340, constituting a surge by 81.9% compared to the same period in 2021.

Invest Easy, the Oman government’s one-stop window to facilitate the clearance of registrations licensing and permits, has so far issued over 286,000 licenses since it was launched about 18 months ago, according to the Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed al Yousef said the Invest Easy portal, coupled with other initiatives currently in various stages of implementation, are designed to help enhance the investment and business environment for local and foreign players in the Sultanate of Oman. “Via Invest Easy, investors can obtain licenses from 18 leading authorities and approval for more than 1,500 economic activities — in one single e-transaction,” said Al Yousef. “Since the launch of the new licensing service in April 2021, over 286,000 licences have been issued — 38,000 of them to international investors. [Courtesy: U-Capital]