Positive overall results did not affect the MSM performance, which however remained hostage to external geopolitical factors that put pressure on foreign investors in the region in general and led to exit or repositioning themselves. Further, local factors such as the absence of long-term investors and speculators also pressurised trading activities.
MSM30 went down by 1.01 per cent on weekly basis. All sub-indices closed down with the Industrial Index being the key loser (-1.25 per cent) followed by the Financial Index (-0.61 per cent) and the Services Index (-0.48 per cent). The MSM Shariah Index closed down by 0.95 per cent w-o-w.
Bank Muscat signed a long-term secured credit facility agreement for RO 120 million with the Oman International Development and Investment Company (Ominvest). Ominvest’s investments are diversified across banking, insurance, leasing, real estate, investment banking and private equity. The company considered to be the largest public listed investment company in Oman, and amongst the largest in the region. The Ominvest group posted notable increase in profits attributable to shareholders of the parent i.e. Ominvest profit was up by 25 per cent YoY at RO 19.8 million.
Gulf Investment Services Holding said in a disclosure to the MSM that its subsidiary company Gulf Baader Capital Markets (GBCM) received a merger offer on Tuesday from Financial Services and the GBCM board will review the letter and take a decision on the same. Similarly, the Financial Corporation Co. SAOG said that it has communicated to Al Maha Financial Services LLC, expressing its interest to explore the possibility of a strategic alliance. The proposal is subject to both parties agreeing to the terms. Seventeen brokerage houses operate in the stock market of which 47 per cent of the market share belongs to the top 3 brokerage houses including U Capital, according to the MSM statistics.
Galfar Engineering and Contracting Co said that the Petrofac — Samsung JV has awarded the company a sub contract in Duqm at a value of $50.6 million. As per the company, 1H’18 board of directors’ report, Galfar has bagged new orders of RO 76 million in addition to extensions and variations awards of RO 42 million.
A Memorandum of Understanding (MOU) was signed between Oman Fisheries Company and Oman Dry Dock Company. The agreement aims at a strategic partnership that serves Oman Fisheries Company and Oman Dry Dock Company related to the fishing sector, manufacturing, and maintenance of boats and fishing vessels.
In the weekly technical analysis, as we indicated in our previous report on MSM30 index it’s already crossed the level of 4,460 points as we mentioned. The market index will move between the first support level at 4,400 points and the first resistance at 4,500 points. Currently MSM30 index crossed down the 50-day moving average.
Total announced 9M’18 initial net earnings so far (except Omantel), as per MSM, for the companies whose year ends in December showed an increase of 11.9 per cent YoY (i.e. RO 50.56 million) at RO 475.8 million backed by both the Services and the Financial sectors. Key supporters include HSBC Bank Oman, National Finance Co, Ominvest, Galfar Engineering & Contracting, Ooredoo, power sector companies and Renaissance Services. This positive performance came despite pressures caused by Dhofar Int. Dev. & Inv. Holding Co. (DIDI), which posted unrealised loss on financial assets at fair value of RO 34.6 million. Excluding this company, total market net earnings would be up by 19.4 per cent to RO 510.5 million. Sector wise, the Service Sector posted best results as its net profit stood at RO 129.8 million for 9M’18 up by 40.8 per cent followed by the Financial Sector (+5.4 per cent) at RO 314 million while the Industrial Sector net earnings saw a decline of 8.8 per cent YoY due to weaker performance by cement companies, Voltamp Energy and Oman Cables Industry.
On a quarterly basis, the market net earnings went up by 17 per cent on yearly basis in 3Q’18 backed by the Financial sector. Banks net earnings form 54.9 per cent of the total earnings in 3Q’18 followed by the Energy sector (22.2 per cent).
Last week, the State General Reserve Fund (SGRF) announced further details about the newly established Infrastructure Fund (Rakiza). SGRF said that the initial value of the fund is $2bn and the sovereign’s fund share will be $300 million and it will also be the investment manager for the new Fund.
Such initiatives serve Oman’s goal to be placed within top 30 in the World Bank Logistics Performance Index (comprises 160 countries) by 2020. As per the Ninth Plan statement, total targeted investments at RO 41 billion to be funded by 52 per cent from private investments with the balance coming from public investments. The majority of these investments will be in key sectors including the infrastructure.
Qatar Exchange led the gainers within GCC region posting weekly gains of 3.36 per cent while Kuwait Stock Exchange was the biggest loser closing down by 1.22 per cent.
Saudi Ministry of Commerce said that the number of cement export licenses issued by the ministry from June to October was six, bringing the total number of licenses to 31, up 24 per cent YoY. According to the ministry, the main export countries are Bahrain, Kenya, Jordan, Yemen, Kuwait, Uganda, Tanzania, Mozambique, USA, the UAE, Angola, Cameroon and South Africa. Data of the listed cement companies showed that their cement exports during 9M’18 amounted to 672k tonnes and clinker 2.075m tonnes. (Courtesy: U-Capital)
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