Omani MSM index on a see-saw trend

Muscat: Oman's Muscat Securities Market (MSM) 30 Index managed to close the week in green by 0.98 per cent amid the turmoil on global equity markets.

This is according to analysis provided by the Muscat-based brokerage firm Gulf Baader Capital Markets. The index enjoyed strong support in the first half of the week as global and regional governments and central banks announced various measures to fight the credit crisis.

However, later half of the week saw the MSM decline again as markets all over the GCC region and globally went back to the negative trend on growing scepticism of success of any measures announced by central banks earlier in the week.

End in green

Overall, the Index closed at 7248.76 points. The Industry Index was the only sector from among its peers to end in green. The sector is up for the week by 0.76 per cent.

Meanwhile, the Banking & Investment Index closed the week with a loss of 0.42 per cent. The Service & Insurance sector closed the week with a loss of 0.74 per cent. Net GCC selling of 10.456 million Omani riyals was seen during the week while Omani investors including local funds and institutions ended as net buyers (15.327 million riyals).

The adv: dec ratio for the week stood at 31:24 among the 62 traded counters.

Overall volumes stood at 98.762 million shares on aggregate market turnover of 59.103 million riyals against 53.719 million riyals the previous week.

During the week, much awaited nine month results from various companies listed on the MSM kept pouring in. Prominent among these were earning announcements from leading stocks like NBO, Oman Cables, Raysut Cement and Bank Sohar.

Also during the week, the shareholders of Bank Dhofar, vide its Extraordinary General Meeting resolved to increase the paid up capital from 53.082 million to 70.774 million riyals through the rights issue by issuing 176.921 million shares representing 33.33 per cent of the existing shares of 530.817 million with total value of 70.769 million riyals.

The shareholders have an option to subscribe for an additional 20 per cent of their rights eligibility.

The rights issue price will be 0.401 riyal per share, comprising 0.100 riyal par value, 0.300 riyal share premium and 0.001 riyal towards issue expenses.

The private placement for the unsubscribed portion of the rights issue would be made to certain specific major shareholders in the agreed percentage. And the Board is authorised, in case that one of those shareholders will not fulfill his commitment, to sell the shares to any other interest party at the same issue price of 0.401 riyal.

Volatile

Moving forward, market is likely to remain volatile. The MSM capitalisation was 7.041 billion riyals at the end of the week.

The market is currently trading at an earnings multiple of 8.30X (Ann) and Price to book of 1.95X.