The MSM 30 Index continued on its downward trend of the last couple of weeks, closing this week down on continued selling pressure from non-Omanis investors. Foreigners sold about $4.1 million worth of securities this week. Omanis absorbed all selling pressure from foreigners as well as GCC and Arab investors, and were net buyers of $5.66 million worth of securities for the week. Musandam Power made its debut trades on the last trading day of the week, and was the fourth largest company by value traded for the week.
The MSM30 Index declined by 0.87 per cent w-o-w to 4,028.89. All sub-indices closed down, led by the Financial Index which closed down by 0.56 per cent, followed by the Services Index which closed down by 0.31 per cent, and the Services Index which closed down by 0.04 per cent. The MSM Shariah Index closed up by 0.68 per cent w-o-w.
Musandam Power, which debuted trading on Muscat Securities Market on Thursday, rose to RO 0.342 during the day and ended up closing the day at RO 0.334, rising 5.7 per cent above its offer price.
Omantel and Muscat Finance announced that they have collaborated to offer Muscat Finance customers instalment payments through Omantel’s large network of 175 Bill Payment Machines (BPMs). This is in line with both companies’ digital transformation strategy.
The Shura Council has begun unofficial discussions pertaining to the State general budget for 2020. As per news sources, the preliminary budgeted oil price for 2020 is $58/bbl, which is similar to 2019. The estimated expenditure is RO 13.2 billion which is RO 300 million higher than the 2019 budgeted figures.
These preliminary figures show that despite the challenges faced by the Sultanate, the government continues on its expansionary policy, aimed at diversifying its income sources and sustaining long-term performance.
According to Oman’s Oil and Gas Minister, OrpicGroup, the state-owned holding company for investment in oil and gas industries, is working plans to sell (about 20-25 per cent) shares by the end of next year. Authorities are also considering selling a stake in the company to a strategic investor. It may make such a sale along with or instead of an IPO. OrpicGroup could list shares on an international exchange.
The latest CBO data for conventional banks indicates that the weighted average interest rate spread (lending rate minus deposit rate) on Omani rial softened by 3.6bps on year-on year basis (YoY), at 3.481 per cent for the month of Aug’19, as weighted average YoY deposit rate growth outpaced YoY lending rate growth. On month-on-month (MoM) basis, the spread expanded by 0.9bps as lending rate rose by 0.9bps and deposit rate remained flat. Weighted average FCY spread softened by 15.1bps on month-on-month (MoM) basis in Aug’19 (at 3.172 per cent) over the previous month. The spread is lower by 49.3bps when compared to Aug’18 and has been contracting steadily over the last few months. Weighted average interest rate on private sector RO time deposits expanded by 3.2bpsMoM in Aug’19, and increased by 39.3bps YoY, to 3.924 per cent. Weighted average interest rate on ALL private sector deposits (RO), rose to 1.456 per cent (+0.9bps MoM and +13.9bps YoY) in Aug’19.
Oman Credit and Financial Information Centre (Mala’a), the Sultanate’s national databank, plans to roll out for the first time a credit score system for individual customers and corporate firms. A credit score is a measure of an individual’s (or a corporate entity’s) ability to pay back a loan. A higher credit score enables borrowers to obtain a loan or credit card with minimum hassles. Credit scores take into account the customer’s credit history, repayment record, and other factors.
Recent data about telecom subscribers revealed that total internet subscribers continued to increase as they were up by 12 per cent till Oct’19 to 471k compared to end of 2018 at 423k. Total fixed telephones lines grew by 5.4 per cent to 589.9k as well as total mobile subscribers which declined by 2.6 per cent to 6.272 million. Active mobile broadband subscribers also went up by 5.7 per cent to 4.34 million subscribers in October 2019 compared to 4.11 million at the end of 2018.
Amongst the GCC markets, Qatar Bourse was the best performer during the week up by 2.07 per cent while MSM30 index was decreased by 0.87 per cent.
The Saudi Stock Exchange (Tadawul) announced that it has updated its indices methodology for the development and management of Tadawul equity indices. Above mentioned changes are detailed as below:
n Free Float Shares calculation methodology has been revised concerning Non Free Float Shares owned by a Government Entity where ownership is 5 per cent and more, restricted shares, companies share buy-back, controlling ownerships and shares held by members of the board of directors.
n Applying a new rule for “Fast Entry” whereby shares of significantly large IPOs are included in TASI at the close of the fifth trading day.
n Applying index capping for TASI with a threshold of 15 per cent.
Except for the Fast Entry rule that is effective immediately, changes related to free float shares and index capping for TASI will be effective by the end of Q4 2019, in alignment with the quarterly indices maintenance.
Kuwaiti banks saw their net foreign assets growing by 6.39 per cent YoY in October, as per the Central Bank of Kuwait’s (CBK) latest statistical report. Overall Kuwaiti banking sector’s net foreign assets totalled KWD 18.712 billion ($61.743 billion) in October 2019, compared with KWD 17.587 billion ($58.031 billion) a year ago.
(Courtesy: U Capital)
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