Thursday, March 28, 2024 | Ramadan 17, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

MSM ends in green but cautious sentiment prevails

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Modest trades and cautious sentiment prevailed in the local stock market during the past week, despite positive announcements from some companies on their financial performance for the year 2018 in addition to government announcements.


MSM30 closed the week up by 0.82 per cent at 4,310.56. The Financial Index was the only gainer up by 1.97 per cent on weekly basis while both the Services Index and the Industrial Index closed down by 0.48 per cent and 0.18 per cent respectively. The MSM Shariah Index also closed up by 0.18 per cent w-o-w.


Galfar announced that it has won a project from Omantel valued at RO 2.87m. Galfar’s board of director’s report for 9M’18 states that the company’s order book is about RO 456m as of September 30, 2018.


Dhofar Fisheries & Food Industries Company SAOG disclosed that the Duqm Special Economic Zone Authority has signed an agreement with the company for the construction of a fish packaging and fish oil production plant at an investment cost of RO 10 million.


Companies have started disclosing their initial results for 2018 including Al Anwar Ceramics (net profit down by 58.6 per cent YoY to RO 0.747k), Al Kamil Power (net profit up by 29.9 per cent YoY to RO 2.42 million) and Salalah Port Services (earnings declined by 3 per cent YoY to RO 5.0 million).


In the weekly technical analysis, as we mentioned last week that MSM30 index will reach the level of 4,280 points (first support level) which was verified. Also we said that MSM30 index will preparing in building positions at this levels were jump up to 4,320 points, currently the index will face a pressure again to lose 30 points.


Analysis related to Muscat Clearing & Depository SAOC data indicate that number of the listed companies of which “Non Omani” ownership exceeds 50pc is 13 companies include Muscat Desalination, Ooredoo, Majan College, Phoenix Power and SMN Power. On the other hand, the number of listed companies with “Foreigners” ownership exceeding 50pc is 4. The companies are Muscat Desalination, Phoenix Power, HSBC Bank Oman an Oman Cables Industry.


The Tender Board approved its first tenders’ packages for the year allocating more than RO 92 million. The key contract is related to construction of connections, interchanges and bridges as part of the 7th package of Al Batinah Expressway for the Ministry of Transport and Communications worth about RO 81.3 million. This shows the government’s commitment to accelerating infrastructure development within the country.


The Ministry of Transport and Communications (MoTC) announced the establishment of Omani Information Technology and Communications Group, an entity owned by State General Reserve Fund. The new entity includes Oman Broadband Company, Oman Towers Company, Blockchain Company, Space Communication Technologies Company and other IT&C that may be established by the government in partnership with the private sector. With this, the Ministry of Transport and Communications has established three groups. They are: 1) Omani Information Technology and Communications Group, 2) Oman Global Logistic Group (Asyad) and 3) Oman Aviation Group.


The World Bank raised its forecasts for Oman real GDP growth in 2019 to 3.4 per cent compared with earlier estimates of 2.5 per cent. This comes in its recent report about global economy, which is a semi-annual report. Earlier estimates were issued in June 2018. The World Bank projects Oman GDP growth to be 2.8 per cent both in 2020 and 2021. For GCC, the report predicts a growth of 2.6 per cent for 2019 versus 2 per cent in 2018.


Foreign trade data indicates trade surplus of RO 3.87 billion during 8M’18, up by 126 per cent YoY (8M’17; RO 1.7 billion). The healthy surplus came on the back of strong merchandise exports growth as it increased by 30 per cent YoY compared with recorded merchandise imports growth of 4 per cent during the same period. Export segments include Oil and Gas and Non-Oil were up by 39.8 per cent and 25.7 per cent respectively while Re-exports went down by 2 per cent.


Oil & Gas forms 64 per cent of the total Merchandise Exports in 8M’18 followed by Non-Oil (25 per cent) and then Re-Exports (11pc).


All GCC financial markets ended the week up lead by the Saudi Stock Exchange, which closed up by 4.83 per cent on weekly basis.


In a key move towards supporting Qatar economy, the country issued a law on non-Qatari capital investment, which opens the way for foreign investors to own 100 per cent ownership in all sectors, as well as support for investors’ entry into the Qatari market. Non-Qatari will also be able to invest up to 49 per cent of the share capital of listed companies on the Qatar Stock Exchange.


The World Bank issued its semiannual report titled “Global Economic Prospects” projecting slower growth of the global economy. The bank projected global economic growth to soften from a downwardly revised 3 per cent in 2018 to 2.9 per cent in 2019 on soften international trade and manufacturing activity in addition to increasing trade tensions. The World Bank predicted that the US economy would be adversely affected by its trade war with China, which would be reflected in a slowdown in growth, with growth this year at 2.5 per cent compared to previous forecasts of 2.6 per cent and 2.9 per cent for 2018.


(Courtesy: U-Capital)



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