The MSM30 Index ended the week up by 0.17 per cent, supported by the Financial index, which rose by 1.18 per cent. The Services Index, however, declined by 1.3 per cent and the Industrial Index declined by 0.63 per cent.
The MSM Shariah Index was higher by 0.37 per cent. Omanis and Arabs absorbed selling pressure from GCC Investors and Foreigners.
Ahli Bank disclosed that it has received regulatory approvals for the rights Issue of 300 million shares at a prices of RO 0.101 (including 1 baisa issue expense) per share. The issue manager is Ubhar Capital.
Muscat City Desalination reported in the company report that, whilst the Company’s audited financial statements for 2020 demonstrate that it has recorded a net profit of RO 1.84 million after taxation, the Company sustains a loss in other comprehensive income of RO 2.65 million due to changes in fair values of derivative financial instruments, which is featured as cumulative net change in the fair value of cash flow hedging instruments of RO 5.88 million in its balance sheet and has resulted in the erosion of the total equity of RO 13.63 million against the share capital of RO 15.55 million.
The International Monetary Fund has praised the swift efforts and the financial measures taken by the Sultanate during the year 2020 to contain the spread of the Covid-19 pandemic and mitigate the financial impacts of low oil prices.
IMF Revised Estimates for Oman. 2021 Real GDP growth was revised to 1.8 per cent from earlier -0.5 per cent. Overall GDP contracted by 6.4 per cent in 2020 (revised up from the previous IMF forecast of -10 percent), with non-hydrocarbon GDP estimated to have contracted by 10 per cent and a shallower decline in hydrocarbon GDP — due to strong oil condensate production not covered by the Opec+ agreement.
The fiscal adjustment plan (Tawazun) targets the elimination of the fiscal deficit over 2021-25 by boosting non-oil revenues while keeping nominal fiscal expenditures broadly constant.
Key revenue measures include: (i) introducing VAT in 2021; (ii) a personal income tax on high-income earners being developed; and (iii) full-year impact of the expansion of the excise tax base in 2020. Key expenditure measures include: (i) containing the wage bill via civil service reforms; (ii) targeting energy subsidies to the most vulnerable groups; (iii) streamlining capital expenditure; and (iv) broad-based improvements in expenditure efficiency.
[Courtesy: U-Capital]
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