The MSM continued on the positive trajectory from last week and ended the week higher, with increased trading activity from last week. This week, primarily Omani investors absorbed the selling pressure from foreign and GCC investors, and were net buyers, together with Arabs, for about $2.53 million worth of securities.
The MSM30 Index gained 0.25 per cent this week to close at 4026.02. The Industrial Index rose by 1.53 per cent w-o-w, followed by the Financial Index which rose by 0.28 per cent, while the Services Index closed down by 0.21 per cent. The Shariah Index closed down by 0.54 per cent.
Galfar received an award of civil works of a value of $16.4 million (RO 6.3 million). YTD the company has received new orders worth RO 164.3 million. Galfar also announced that it will establish its new hub at the Khazaen Economic City. The hub, covering an area of 150,000 sq metres, will host the public listed company’s relocated base workshop, labour accommodation and associated facilities along with other identified functions. The company’s planned complex will also have ancillary units including a body shop, paint shop, auto store, electrical/battery shop, tyre fitment shop, machine shop, carpentry shop, aluminium shop, scaffolding shop and a portacabin fabrication facility. Galfar will also be constructing labour accommodation at the new facility.
Rating agency Moody’s warned last week that problem loans in Oman are set to rise to as much as 3.7 per cent of gross loans in 2019-20, from 2.8 per cent in June 2019, with the stressed construction sector heightening risk. Constrained government finances due to oil output cuts will limit banks’ access to funding and liquidity, while credit growth will remain stable at 6.5 per cent through 2019 and 2020, although well below historic levels.
Oman plans Airport Cities in Muscat, Suhar and Salalah. Thus each Airport City will feature five gates — the commerce gate, hospitality gate, logistics gate, free zone and aviation gate — lending it the characteristics and trappings of an integrated urban development. Also envisaged are free zones to serve as hubs for processing (fish and farm products), light manufacturing, assembly, labelling and packing, among other investments. The news magazine which published this news also quoted the official as saying that the old Seeb International Airport terminal would be developed into a hub for aviation related education and entertainment. In related news, State-owned Oman Aviation Group selected local and international banks to raise a $3 billion loan, according to people with knowledge of the plan. The state-owned holding company is seeking to raise about $6 billion to fund the building of new airports and an expansion of national airline Oman Air.
Latest figures from CBO reveal that Oman’s narrow money supply (M1) decreased by 1.6 per cent MoM and increased by 2.0 per cent YoY to RO 5.18 billion. Broad money (M2) supply rose by 0.3 per cent MoM and 5.3 per cent YoY in July’19 to RO 17.33 billion, indicating an increase of RO 55 million in domestic liquidity on MoM basis.
Recent data about telecom subscribers revealed that total internet subscribers continued to increase as they were up by 7.5 per cent in July’19 to 455k compared to end of 2018 at 423k. Total fixed telephones lines grew by 3.6 per cent to 579.6k as well as total mobile subscribers which increased by 3 per cent to 6.63 million on higher postpaid mobile subscribers and resellers. Active mobile broadband subscribers also went up by 5.3 per cent to 4.32 million subscribers in July 2019 compared to 4.11 million at the end of 2018.
As per MSM annual report, in the last five years, number of companies which have delisted amount to 18 and the amount of capital/market cap reduced from the stock market amounted to RO 127.3 million. In 2018, five companies got delisted with a capital of RO 50.6 million i.e. highest during the last five year period. Also during 2018, three companies reduced their capital by RO 13 million.
Among the GCC markets, Oman bourse was the only gainer for the week at 0.25 per cent while all other markets ended in red led by Kuwait at 1.35 per cent.
The kingdom’s real GDP during the second quarter softened to 0.5 per cent year-on-year after expanding 1.7 per cent in the first quarter of the year. The kingdom’s non-oil gross domestic product grew 2.9 per cent year-on-year, higher than 2.1 per cent rate of expansion achieved in the first quarter of 2019. The pick up in non-oil economic growth was the strongest since the fourth quarter of 2015. Some of the rise in private sector activity was also likely supported by investments made through the kingdom’s sovereign wealth fund, the Public Investment Fund, which is central to the kingdom’s efforts to transform its economy. Government sector growth was broadly stable in the second quarter of this year, at 1.76 per cent year-on-year from 1.74 per cent in the first three months of the year.
Qatar’s Gross domestic product (GDP) contracted by 0.9 per cent in the second quarter compared to the first, based on constant prices. GDP also contracted by 1.4 per cent in the second quarter from a year earlier, according to government statistics, hurt by a drop in the manufacturing and construction sectors. The manufacturing sector declined 7.4 per cent, while construction fell 3.5 per cent. Qatar’s tourism revenues fell 5.1 per cent in the first half of this year compared to the same period last year. — Courtesy: U-Capital
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