The MSM30 Index ended the week up by 1.64 per cent. All sectors ended positively.
The Industrial Index ended the highest and up by 2.46 per cent. Services Index was higher by 1.72 per cent and the financial Index was up by 1.56 per cent. The MSM Shariah Index rose by 1.89 per cent.
Takaful Oman announced on the bourse that it is in the process of issuing a perpetual Sukuk worth RO 6 million through private placement. The issue manager is Sohar Islamic. This is subject to the approval of CMA.
OIFC disclosed important decisions taken at the EGM and OGM held during the week. The proposed merger between OIFC and GIS under which GIS will merge into OIFC was approved and the proposed increase in the company’s authorised capital RO 20 million to RO 30 million was also approved. Further, the proposed increase in the paid-up capital of the company from MR 20 million to RO 23.7 million was also approved.
The increased paid-up capital shall be allocated to GIS’s shareholders on the pro-rata of their shareholding in GIS. The issuance of secondary unsecured bonds with a value of RO 750k for a term of 5 years with 5 per cent interest was approved. The bonds shall be allocated to GIS’s shareholders on the pro-rata of shareholding in GIS.
Oman’s central bank said it approved a recommendation that would provide more flexibility for banks in financing stock market investments. The regulator’s board reviewed the prospects and challenges facing the economy and approved a recommendation to amend some of the provisions in granting of loans against shares.
“The amendment is expected to provide greater flexibility and enhanced opportunities to banks in financing investments in shares or against the security of shares,” according to a statement posted on its website.
CBO’s foreign assets stood at RO 6.77 billion as at the end of October 20, having increased by 8.1 per cent YoY and 3.6 per cent MoM or RO 232.3 million during the month.
The MoM increase is brought on by a 7.4 per cent MoM increase in placements abroad (which account for about 49 per cent of the total foreign assets). Bullion was flat while IMF Reserve Assets increased 0.2 per cent MoM and securities abroad rose 0.1 per cent MoM.
CBO’s foreign assets are above the trailing 12-month simple average of RO 6.45 billion. CBO’s foreign assets include bullion, IMF reserve assets, placements abroad and foreign securities.
The RO overnight domestic inter-bank lending rate expanded by 7.9bps on month-on-month (MoM) basis to 0.859 per cent in October 20. The rate had been roughly on a downtrend since the Fed funds rate cuts began last year and increased slightly during June ‘20 before easing again in July. It is well below 2.397 per cent recorded a year ago.
The highest ever recorded was 2.770 per cent in July 19. Furthermore, overnight interbank lending amount touched RO 24.57 million, down by 51.8 per cent YoY but up by 16.5 per cent MoM. (Courtesy: U-Capital)
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