Thursday, March 28, 2024 | Ramadan 17, 1445 H
broken clouds
weather
OMAN
23°C / 23°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

MSM drops marginally on foreign selling pressure

MSM1
MSM1
minus
plus

MSM30 closed the week lower by 0.11 per cent. The turnover and volumes were higher than last week by 42.3 per cent and 72 per cent, respectively. Locals were net buyers while foreigners were net sellers.


All the sub-indices closed lower except Financial. Industrial index was down by 1.83 per cent, Services Index was down by 1.11 per cent while the Financial index was up by 0.85 per cent. Shariah Index closed up by 0.06 per cent during the week.


Bank Muscat completed an unsecured bilateral loan facility of $150mn, which has a 5-year tenure, with China Development Bank (CDB), a development finance institution of the People’s Republic of China. The closure of the $150mn bilateral loan follows the closure of a Club Loan for USD 650mn recently from a consortium of 20 relationship banks from around the globe.

National Life & General Insurance received circulars by regulators in Oman and UAE to pay claims for COVID-19 notwithstanding the exclusion. Following the regulatory directive, the reinsurers of the Company have agreed to pay their share of the claims as a special case. As at May 31, 2020 claims reported for COVID-19 at Company level is around RO 0.6mn on gross basis and RO 0.4mn on net basis (net of reinsurer share).


Raysut Cement results came with a surprise as the company reported net loss of RO 4mn in 1Q20 (generally one of the best quarters because of seasonality and lesser COVID-19 impact till March). Revenue during the period was higher by 11.3 per cent to RO 25.6mn compared to RO 23mn last year. Expenses on the other hand rose significantly by 31.5 per cent to RO 29.8mn compared to RO 22.7mn.


Galfar Engineering revised its loss after tax from RO 59k to RO 6.294mn for the year 2019.  Revenue was changed marginally from RO 253mn to RO 251mn. Company which earlier recorded impairment of receivables at RO 242k changed it to RO 18.1mn because of IFRS requirements. Management and board are however confident of collecting the old outstanding receivables against which provision is created in the books of account resulting in reversal of those provisions in near future. Company recorded RO 15.2mn profit from sale of discontinued operations. Galfar Engineering order book as of 2019 stands at RO 401mn of which RO 111mn is from the oil and gas sector.  Company’s unpaid certified receivables stand at RO 60mn at the closing of 2019.


Oman National Engineering reported net income of RO 379.4k compared to RO 356.3k, growth of 6.5 per cent. Revenue during the period was higher by 3.96 per cent to RO 12.2mn. Expenses in the same period were up 3.88 per cent.


Oman reported surplus in the month of March 2020 at RO 280mn. Surplus was largely because of growth in other revenue segment which were recorded at RO 629mn (up 238 per cent m-o-m) in the month of March. Overall deficit stood at RO 36mn in 1Q20 compared to RO 309mn in 1Q19, drop of 88 per cent. Revenue during 1Q20 stood at RO 2.6bn compared to RO 2.71bn last year, drop of 3.5 per cent. Oil and gas revenue were lower by 14 per cent and 20 per cent respectively during 1Q2. While other revenue segment reported a growth of 37.3 per cent YoY to RO 853mn in 1Q20 compared to RO 621mn in 1Q19. Expenditure dropped by 12.2 per cent to RO 2.65bn compared to RO 3.02bn last year. [Courtesy: U-Capital]


SHARE ARTICLE
arrow up
home icon