MSM Value of Trading Decreases to RO40.2 Million

Muscat, The value of trading at Muscat Securities Market (MSM) in October 2018 declined to RO40.2 million compared to RO48.9 million in September; a decline by 17.7%.

The trading of last month is contrary to the 15.1% growth in the GDP at current prices; from RO12.7 million at the first six months of 2017 to RO14.7 million at the corresponding period in 2018.

Many other economic indicators were also on the upside during this year. The Sultanate’s revenues increased to RO6.6 billion in the first eight months of this year compared to RO5.3 billion at the corresponding period in 2017; a growth by 24.4%.

The Sultanate’s foreign trade at the first half of this year jumped to RO7.7 billion compared to RO6 billion at the corresponding period last year. The average price of Oman oil as of September 2018 increased to $67.2 per barrel compared to $50.6 during the same period last year; a growth by 32.7%.

The good performance of the national economy coincided with many leading companies posting good results at the third quarter of 2018. The profits of Bank Muscat, the biggest listed company in MSM in terms of capitalization with RO1.2 billion, at the first nine months of the year, increased to RO134.7 million compared to RO130.2 million at the corresponding period last year. Bank Dhofar, which is the third in terms of capitalization after Omantel, said that its net profit during the first nine months of the year increased to RO35 million compared to RO33.9 million at the corresponding period last year. Omantel has not yet announced its results till the date of publishing this report.

The value and volume of trading at MSM has been fluctuating this year with the highest value of trading (RO154.9 million) registered in May 2018 and the lowest value of trading (RO25.5 million) registered in August.

Bank Muscat’s share of the value of trading during past months stood at 26% or RO10.4 million followed by Ooredoo with 8.9 % or RO3.6 million and Bank Dhofar with 6.7% or RO2.7 million.

MSM indices went downwards as the MSM30 declined by 2.6% to close at 4422 points; a decline by 120 points. This recession comes after two months from an increase by 124 points in September and 82 points in August 2018.

The industry index registered the biggest decline with 3.5% to close at 5337 points; a decline by 198 points. While the service sector index declined by 3%, the Sharia market index and the financial sector index declined by 1.8% and 1.5% respectively.

During last month, while the value of 12 securities were in the upward side, 48 securities were in the downward side and 23 securities remained unchanged. The biggest increase was registered by 47.5% from 120 Baises to 189 Baises. This is the price defined by the company for buying the minority shares as part of their transformation from a public joint stock company to a closed joint stock company.

The company said that it has received initial approval from CMA on this conversion. It pointed out that Oman Investment Fund Holding and Middle East Investment Company own 99.7% of the company shares and that the two companies support this transformation. They undertook to buy the shares of the remainder shareholders at RO 0.189 per share if they have the desire to sell their shares before transforming into a closed joint stock company.

While Dhofar Insurance share increased by 11.8% to close at 160 Baises, the Share of Sohar Power increased by 9.7% from 113 Baises to 124 Baises.

Oman Qatar Insurance share increased by 7.8% to close at 124 Baises. Izz Islamic Bank share increased by 4.7% to close at 89 Baises.

A number of shares registered sharp recessions. Arabian Falcon Insurance declined by 36.8% from 190 Baises to 120 Baises. Muscat Gases share declined by 14.9% to close at 224 Baises. Al Anwar Holding share declined by 13.6% from 117 Baises to 101 Baises. The share of Omani Investment and Finance declined by 13% from 100 Bases to 87 Baises. The share of Al Anwar Ceramics also declined from 89 Baises to 78 Baises.

Source: Oman News Agency