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MSM on rebound
Muscat Securities market made an excellent recovery this month
The market reported a marked revival in the period 21 May-21 June, 2006. The
general index improved by 3.15 per cent. The banking sector was the only
marginal loser while the industry and service sectors improved substantially.
Among the period’s most significant developments, Omantel came out with a
provisional result for the period ending 31 May, 2006. The profits for five
months stood at RO37.523 million, almost 18.7 per cent higher than the
corresponding period of year 2005 which stood at RO31.603 million. ONIC Holding
declared a 30 per cent cash dividend and 10 per cent stock dividend.
Fincorp is in the process of selling 50 per cent of its holding in Osool Inv.,
Jordan. The selling price will be JD1.800 per share, representing a return of 80
per cent over an investment period of seven months.
United Insurance company SAOG decided to postpone the rights offer to the second
half of September 2006, and the rate of the right offer will be decided in the
light of the prevailing market conditions at that time. The board decision to
postpone the rights offer is based on summer season as shareholders are on
vacation, and after taking into consideration the current sentiment of MSM and
the decline of the MSM30 Index.
Future Outlook
During the month of May 2006, the world markets registered very significant and
steep fall. However, this has not affected GCC markets to a greater extent. The
main reasons for the fall in the world market indices were:
1. A continuous weakness exhibited by the US economy both in terms of higher
budget deficits and higher current account deficits which is mostly responsible
for erosion in the value of the US Dollar.
2. A continuous depreciation of Dollar forces the US Federal Reserve to raise
the interest rates. This in turn fuels the interest rate increase across the
globe.
3. A fall in metal prices which rose to unsustainable levels in the last three
years.
4. A continuous increase in crude oil prices where the demand-supply gap is
widening.
Though these factors are adverse for other global markets, the last factor is
greatly advantageous to the GCC markets and pushed up the valuations there. As a
result, there is an enormous liquidity floating in the Gulf region which should
fuel stock market growth. The other factor is the rapid economic expansion in
the Gulf regime due to higher oil revenues for the government. Due to all this,
Gulf markets should enjoy excellent economic growth in future, which should be a
fuel for stock market growth.
 |
Data and
analysis by The Financial Corporation SAOG (Fincorp).
While utmost care has been taken in preparing the
above report, neither Fincorp nor Oman Economic Review
make any guarantee, representation or warranty,
whether express or implied, and accepts no
responsibility or liability as to its accuracy or
completeness of the data being provided. |
Following this, the entire GCC markets, especially Oman, where valuations are
much more attractive compared to other GCC counterparts, should attract more
global investors and funds. As said by us many times, investors should stay
invested in good companies with a medium to long term perspective to take
advantage of these factors.
|
Index
type |
21-May-06 |
21-Jun-06 |
MTD
Growth-% |
YTD
Growth-% |
|
General |
4,754.38 |
4,904.29 |
3.15% |
0.60% |
|
Banking |
6,610.45 |
6,587.98 |
-0.34% |
-3.79% |
|
Industry |
3,125.77 |
3,417.13 |
9.32% |
-9.56% |
|
2,007.93 |
2,007.93 |
2,094.59 |
4.32% |
6.02% |
Top^
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:: OER - April - 2006 ::
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July 2006 |
|
Cover Story |
|
INTELLECTUAL PROPERTY
RIGHTS: Protection to Rightful Ownership
“Intellectual property rights
include patents (utility, design, and plant), copyrights, and
trademarks. A common definition of intellectual property rights is
the rights given to persons over the creations of their minds.”.... |
|
Other Headlines |
|
Excess liquidity a challenge
Khalid Howladar, Vice President-Senior Analyst with Moody’s and a
well-known name in the international finance area, was in Muscat recently
to conduct a workshop on “Asset-Backed Debt Market”, in association with
OER. He talked to Mehre Alam on certain key issues concerning the debt
market in Oman and the region. Excerpts:..... |
|
Omani workers to get same
status as UAE nationals
In
a major development that is likely to have a profound impact on the labour
markets of Oman and UAE, a Memorandum of Understanding.... |
|
Oman is a bipolar market
Ki Wan Kim, who moved in as the new President based out of Dubai for
LG Electronics in the Middle East (ME) & Africa, was completely surprised
by the Sultanate of Oman.... |
|
GCC stock markets: What
next?
In retrospect, the global emerging market
sell off echoes the earlier falls in the GCC markets. Egypt has become a
casualty of the latest Wall Street grizzly jitters.... |
|
New golf equipment kicks up
a row
The game of golf finds itself in the midst
of a new row. Some of the recent technological advancements in golf
equipment have set tongues wagging, literally.... |
|
Human trafficking: The curse
Economists point to the fluidity of capital as a driving force in the
global markets. Capital respects no borders or nationalities.... |
|
PPP, the new fad in Middle East
Public Private Partnerships (PPP) have, in recent times, revolutionised
the way the public sector operates. Instead of the public sector procuring
a capital asset by paying for it in full upfront.... |
|
Pulse-raising sedan
What makes Chrysler 300C SRT-8 so exceptional is that it is probably one
of the few sedans that combines the refinement and performance of the
expensive super sedans with an affordable price tag of RO20,000.... |
|
Oman’s economy makes a robust growth
Oman’s economy grew by 24 per cent in 2005 as against 14.2 per cent growth
recorded in 2004 as per Central Bank of Oman’s Annual Report 2005.... |
|
Dial ‘D’ for ‘DJ Devil’
Did you ever hear of someone called DJ Devil? A Muscat-based
“devil”! Ask the DJ buffs of the capital city. They’ll tell you who this
“devil” is! He is someone called Devan Thuppali.... |
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MSM on rebound
The market reported a marked revival in the period 21 May-21 June, 2006.
The general index improved by 3.15 per cent. ... |
|
Pleasures of Plastic Money
By SARADA VISHNUBHATLA
Passé are the days when one carried wads of hard currency in one’s pocket.
Well, almost. Nowadays, be it young working adults or seasoned
businessmen, it is with a studied finesse that they use chic-looking
plastic cards.... |
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Breed innovation from within
He has spent 30 fabulous years in Muscat. D.R. Bijlani, General Manager of
Muscat Electronics LLC, gives a first person account to OER I landed in
this beautiful country.... |
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Personality |
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Turnaround
expert
Omar Ahmed Qatan has a clear formula when it comes to work ethic.
“Be fast and quick to work; exert the torque on time as the world will
rotate faster than you if you don’t,” he
says.... |
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Regulars |
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