MSM traded value declines in October

Muscat: The value of trading in the Muscat Securities Market (MSM) in October 2018 declined to OMR40.2 million compared to OMR48.9 million in September, a decline by 17.7 per cent.
The trading of last month is contrary to the 15.1 per cent growth in the gross domestic product (GDP) at current prices, from OMR12.7 million in the first six months of 2017 to OMR14.7 million in the corresponding period in 2018.
Many other economic indicators were also on the upside this year. The Sultanate's revenues increased to OMR6.6 billion in the first eight months of this year compared to OMR5.3 billion in the corresponding period of 2017, a growth by 24.4 per cent.
The Sultanate's foreign trade in the first half of this year jumped to OMR7.7 billion compared to OMR6 billion in the corresponding period last year. The average price of Oman oil as of September 2018 increased to US$67.2 per barrel compared to $50.6 during the same period last year, a growth by 32.7 per cent.
The good performance of the national economy coincided with many leading companies posting good results in the third quarter of 2018. The profits of Bank Muscat, the biggest listed company in MSM in terms of capitalisation with OMR1.2 billion, in the first nine months of the year, increased to OMR134.7 million compared to OMR130.2 million during the corresponding period last year. Bank Dhofar, which is third in terms of capitalisation after Omantel, said that its net profit during the first nine months of the year increased to OMR35 million compared to OMR33.9 million in the corresponding period last year.
Omantel had not yet announced its results till the date of publishing this report.
The value and volume of trading on MSM has been fluctuating this year with the highest value of trading (OMR154.9 million) registered in May 2018 and the lowest value of trading (OMR25.5 million) registered in August.
Bank Muscat's share of the value of trading during the past months stood at 26 per cent (OMR10.4 million), followed by Ooredoo with 8.9 per cent (OMR3.6 million) and Bank Dhofar with 6.7 per cent (OMR2.7 million).
MSM indices went downwards as the MSM30 declined by 2.6 per cent to close at 4,422 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 per cent to close at 5,337 points, a decline by 198 points. While the service sector index declined by 3 per cent, the Sharia market index and the financial sector index declined by 1.8 per cent and 1.5 per cent respectively.
Last month, while the value of 12 securities was on the upward side, 48 securities were on the downward side and 23 securities remained unchanged. The biggest increase was registered by 47.5 per cent from 120 baisas to 189 baisas. 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 per cent of the company shares and that the two companies support this transformation. They undertook to buy the shares of the remainder shareholders at OMR0.189 per share if they have the desire to sell their shares before transforming into a closed joint stock company.
While Dhofar Insurance shares increased by 11.8 per cent to close at 160 baisas, the shares of Sohar Power increased by 9.7 per cent from 113 baisas to 124 baisas.
Oman Qatar Insurance shares increased by 7.8 per cent to close at 124 baisas. Izz Islamic Bank shares increased by 4.7 per cent to close at 89 baisas.
A number of shares registered sharp recessions. Arabian Falcon Insurance declined by 36.8 per cent from 190 baisas to 120 baisas. Muscat Gases shares declined by 14.9 per cent to close at 224 baisas. Al Anwar Holding shares declined by 13.6 per cent from 117 baisas to 101 baisas. The shares of Omani Investment and Finance declined by 13 per cent from 100 baisas to 87 baisas. The shares of Al Anwar Ceramics also declined from 89 baisas to 78 baisas.