Friday, March 29, 2024 | Ramadan 18, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

MSM30 declines due to foreign institutional selling pressures

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Calm trades, some deals, shifting positions and entry of local individuals, were some of the key highlights of market trends over the previous week.


MSM30 closed the week down by 2.21 per cent at 4,448.11. All sub-indices closed down led by the Financial Index (-2.44 per cent) followed by the Industrial Index (-1.54 per cent) and then the Services Index (-1.29 per cent). The MSM Shariah Index also closed down by 1.15 per cent w-o-w.


National Gas Co disclosed further details regarding the setting up of an LPG import and storage terminal in India. It said that the agreement which was signed between the Company’s Indian subsidiary and other company (KPCL) in November this year related to sub lease of land at port premises is a definitive agreement. The company added that it injected an initial share capital of RO 1.34 million which was happened in the same time of the signing of the agreement with (KPCL). According to 9M’18 financials, National Gas Co group net profit attributable to the equity holders of the parent went up by 43.3 per cent, YoY.


Oman Fisheries Co announced that it has invested in a project for construction of a tuna and sardine canning plant in a name of the Global Seafood Co. The company will invest 10 per cent of the project capital. The project will be established with other investors including Oman Food Investment Holding Co and other investors. According to the disclosure, the first phase of the project is RO 28.8 million.


ACWA Power Barka in an update on GT-1 technical fault incident, said that Gas Turbine 1 shall be back in service by end of January 2019. The company earlier estimated the initial financial impact to be RO 2 million and that it informed the insurers about the incident. However, the final financial impact is yet to be addressed.


National Finance has invited its shareholders to an Ordinary General Meeting in order to approve proposed cash dividend at 5.54 per cent of paid-up capital and stock dividend at 2.77 per cent of paid-up capital as at September 30, 2018.


Cash dividend of 5.54 baisas and stock dividend of 2.77 baisas yield 4.1 per cent and 2.1 per cent respectively at the current market price of RO 0.135 per share. The company has proposed a total pay-out of 42.9 per cent (cash & stock) on 9M’18 earnings. Cash pay-out is 28.6 per cent and stock dividend pay-out is 14.3 per cent. The OGM will be held on December 30.


In the weekly technical analysis, as we mentioned in our last recommendation that the MSM30 index will reach the level of 4,500 points (support level), which is happened, currently the technical indicators shows that closing MSM30 index below this level will pressure to reach the level of 4,440 points. MSM 30 index crossed down the 10-day moving average (negative indicator).


In 2018, tenders worth RO 221.4 million were awarded according to the media and U Capital database. This represents an annual decline of 6.5 per cent. Major contracts were for in (as usual) health sector, education sector, infrastructure and logistic projects. The 3rd quarter registered the highest value of awarded tenders amounting to RO 83.5m. On monthly basis, April’18 was the highest with total awarded tenders of RO 67.7 million. The largest tender was related to catering, food, housekeeping and laundry services for the Ministry of Health hospitals and health centres in the Sultanate for three years with total amount of RO 48.5 million.


Analysis related to actual investment expenditures in the general budgets during 2015-17 and 9M’18 indicate that they formed on average 22.4 per cent of the total public expenditure.


On the other hand, the breakup of these investments indicate that “on average”, 49.6 per cent is linked to development expenditures (includes government companies) followed by Oil Production Expenditures (27.6 per cent) then Gas Production Expenditures (22 per cent) and finally Capital Expenditures for civil ministries (0.7 per cent). In 9M’18, total investment expenditure stood at RO 1.9 billion, down by 5.8 per cent YoY. (Courtesy: U-Capital)



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