MSM up 2.63pc buoyed by attractive prices, Opec+ deal

The MSM30 Index closed the week up by 2.63 percent, while the MSM total return index was also up by similar percentage points during the week. Low share prices and the battering of companies in previous weeks along with prospects of an increase in oil prices following the OPEC+ talks, have been the major factors behind the uptick.

All sub-indices closed up. The Financial Index closed up by 2.29 percent w-o-w, Services and Industrial index also closed up by 1.96 percent and 0.29 percent w-o-w. The MSM Shariah Index closed up as well by 0.72 per cent w-o-w.

The Capital Market Authority (CMA) extended the deadline for publicly listed companies to disclose their first quarter (Q1) Financial Statements to June 30, 2020. Consequently, the preliminary financial results for Q1 2020 that are due to be disclosed by April 15, 2020, may now be disclosed latest by June 30, 2020. Likewise, the deadline for filing of detailed financial results for Q1 2020 has been extended from April 30, 2020 to June 30, 2020.

Muscat Securities Market issued an administrative circular extending the trading hours at MSM to three hours from two hours, effective this week. The pre-trading session shall start at 9 am, the continuous trading session shall be from 10 am (for three hours) and the closing session shall be at 1 pm.

Bank Nizwa announced that it has RO 5mn direct financing to the subsidiary Elegant Medical Centre (34.3 percent indirectly owned by NMC Healthcare through its other subsidiaries), for sole operations in Oman only.

Galfar Engineering received letter of award for Fahud Runway Rehabilitation Project of RO 9.45mn. Completion period is 11.5months.

The gross foreign assets of the State General Reserve Fund increased 5.2 per cent to RO 6.659bn as of September 30, 2019, up from RO 6.328bn as of December 31, 2018, according to the Central Bank of Oman.  CBO’s foreign assets as at the end of Feb’20 stood at OMR 6.11bn, having contracted by 6 per cent YoY and 3 per cent MoM. CBO’s foreign assets are below the trailing 12-month simple average of RO 6.31bn. These assets include bullion, IMF reserve assets, placements abroad and foreign securities.

Oman’s total credit reached RO25.93bn, +0.1 per cent MoM and 2.5 per cent YoY in Feb’20. Private sector credit comprised 88.2 per cent of the total, rising by 0.3 per cent MoM and 2.5 per centYoY. Total deposits touched OMR 23.59bn, rising by 0.1 per centMoM and 4.0 per centYoY. Private sector deposits formed 65 per cent of the total, rising by 0.7 per centMoM and 7.2 per centYoY. Loan-to-Deposit Ratio remained stretched at 109.9 per cent, unchanged from the previous month, and down from 111.48 per cent a year ago.

As per the CBO, Oman’s narrow money supply (M1) decreased during the month of Feb’20 by 2.4 per centMoM but rose by 4.2 per centYoY. Broad money (M2) supply increased by 0.5 per centMoM and 7.2 per centYoY, indicating an increase of OMR 1.22bn in domestic liquidity on YoY basis in the month of Feb’20.

Regionally, Abu Dhabi was the best market with gain of 9.45 per cent while Kuwait market was the biggest loser down by 6.29 per cent.

Qatar received over $41bn in combined orders for a planned issue of dollar-denominated bonds in tranches of five, 10 and 30 years. Qatar tightened the price guidance for the bonds by 35 basis points (bps) across the three tranches, to around 300 bps over U.S. treasuries for the five-year tranche, around 305 bps over the same benchmark for the 10-year tranche and 4.4 per cent for the 30-year tranche.

Point-of-sale transactions in Saudi Arabia saw a 35 per cent year-on-year (YoY) increase to SAR 25.9bn in February 2020, as per Saudi Arabian Monetary Authority (SAMA). Data showed that 183.3mn transactions were processed through nearly 462,900 points-of-sales in shopping malls, retail stores, and pharmacies. Cash withdrawals rose 3 per cent YoY to SAR 56.39bn through 166.5mn transactions processed across 18,900 ATMs in February.

 

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