Moderate trades were seen during the two business days of the previous week prior to the start of the Eid holidays. The MSM30 ended the week up by 0.19 per cent at 3,941.82. The Industrial Index went up by 0.99 per cent while both the Services Index and the Financial Index closed down by 0.38 per cent and 0.21per cent respectively. The MSM Shariah Index closed up by 0.43 per cent w-o-w.
Bank Nizwa signed RO 18 million MoU for a sharia-compliant financing agreement with Oman Food Investment Holding Co (OFIC), helping the group to invest in its group companies and new projects and promote its portfolio of food companies.
This recent agreement follows another financing deal of RO 15 million, which was signed last year between Bank Nizwa and one of the OFIC Group Company, Al Bashayer Meat Co.
Shinas Generating Company (SGC) has announced the commencement of commercial operations at its power plant. The power plant (Sohar-3) generates 1,710 megawatts (MW) in net, the second largest power plant in the Sultanate. Reputed sponsors (Mitsui, ACWA & DIDIC) have invested around $1bn (equivalent to RO 384 million) to complete this project.
Oman National Engineering & Investment Company was awarded RO 11.1m contract by Oman Electricity Transmission Company for construction of 132,133 KV Mirbat GS with 2x63 MVA and associated 132KV OHL from Ashoor GS to Mirbat GS for a period of 20 months. This is the ninth contract received by ONEIC this year and the total sum for those stands at RO 28.42 million.
His Majesty the Sultan has issued a directive to give tax breaks to any new investor who wishes to establish a tourist project in Musandam. The Royal Directives exempt from customs duty the building materials, tools and equipment required by the tourism project during the construction period, and exemption from the 4 per cent tourism tax and 5 per cent municipal tax for the first ten years of operation of the project. The Royal Directives exempt Musandam tourism projects from the 15 per cent companies income tax for the first decade of operations.
MSM announced annual revision of MSM30 companies. As per the announcement, five companies have exited and five new companies are now part of index. Companies which exited are: Alizz Islamic Bank, National Gas, Al Jazeera Services, Al Madina Investment and Oman & Emirates Investment Holding. While the new companies which will be part of MSM 30 are: Oman Refreshment, Muscat Finance, Al Suwaidi Power, Al Batinah Power and Al Maha Petroleum.
Latest CBO data for conventional banks indicates that the weighted average interest rate spread (lending rate minus deposit rate) on Omani rial softened by 5.9 bps on year-on year basis (YoY), at 3.458 per cent for the month of March 2019, as weighted average deposit rate growth outpaced lending rate growth. On month-on-month (MoM) basis, the spread improved by 0.7 bps as deposit rate rose by 0.4 bps and lending rate increased by 1.1 bps. Weighted average FCY spread rose by 9.8 bps in March 2019 (at 3.759 per cent ) over the previous month. The spread is higher by 52.8 bps when compared to March 2018 rate, and has been rising steadily over time. Weighted average interest rate on private sector RO time deposits rose by 3.6 bps MoM in March 2019, and increased by 27 bps YoY, to 3.786 per cent which is above the average of 3.594 per cent over March 2018-February 2019. Weighted average interest rate on all private sector deposits (RO), rose slightly to 1.374 per cent (+1.0 bps MoM and +15.5 bps YoY) in March 2019 when compared to an average of 1.317 per cent over March 2018-February 2019.
Among GCC markets which were opened last week, Kuwait Stock Exchange topped the gainers up by 0.57 per cent.
GCC healthcare companies performance during 1Q19 was pretty mediocre. Earnings of the sector declined by 35 per cent YoY to $106.8 million compared to $165.3 million in 1Q18.
The data set belongs to 15/17 companies which have announced results. Only four out of 15 companies registered growth in net income while all others witnessed decline in profitability. Country wise performance revealed that, net income of Kuwait healthcare sector witnessed gain of 1.8 per cent while all others witnessed decline in income. The decline was led by Saudi Arabia at 43.8 per cent YoY followed by UAE at 32.1 per cent YoY while Qatar at 14.9 per cent YoY during 1Q19.
Worldwide regulated open-end fund assets decreased 6.9 per cent to $46.70 tn at the end of the fourth quarter of 2018, excluding funds of funds. If we include fund of funds then the AUMs stood at $50.4 tn. The collection for the fourth quarter of 2018 contains statistics from 47 jurisdictions.
The drop in open-end fund assets reported in US dollars, in part, reflected US dollar appreciation in the fourth quarter of 2018. On a US dollar-denominated basis, equity fund assets decreased by 12.4 per cent to $19.92 tn at the end of the fourth quarter of 2018. Bond fund assets decreased by 1.2 per cent to $10.14 tn. Balanced/mixed fund assets decreased by 7.1 per cent to $5.84 tn, while money market fund assets increased by 1.6 per cent to $6.08 tn.
[Courtesy: U Capital]
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