Sunday 10 / November / 2024
Muscat: Muscat Securities Market (MSM) rose 215 points in February 2016, on the back of partial oil price recovery, improvement in global stock markets and improvement in the financial results of many listed companies in line with analysts' expectations.
The main index, MSM 30, closed at 5,395 points, up by 4.1 per cent, trimming its losses this year to 11 points as the index lost 226 points in January.
All sectoral indices rose, particularly the service sector and the financial sector index, which increased more than 5 per cent, while the Sharia-compliant market index rose 2.3 per cent and the industry index rose 1.3 per cent.
Local buying spree boosted stock prices. While share prices of 39 companies rose, 18 companies were still in the red and 16 companies maintained their previous levels. Statistics issued by MSM indicated that the value of local procurement amounted to OMR82.6 million, constituting 89.5 per cent of the total market trading volume amounting to OMR92.3 million, while domestic sales amounted to OMR68 million, and 73.6 per cent of total trading.
Statistics showed good interest in investing in the market in February by the local Omani individuals and institutional investors whose purchases made up about 37 per cent and 52 per cent respectively of the total trades compared to sales ratio reached respectively 32.3 per cent and 41.2 per cent.
The trading volume last month rose to OMR92.3 million, compared to OMR78.2 million in January. Bank Muscat accounted for 14.6 per cent of the trades, with a trading volume of OMR13.5 million, followed by Al Anwar Holding with OMR8.6 million, 9.3 per cent of trading. Omantel came third with a trading volume worth OMR7.9 million.
In February, MSM registered gains valued at OMR861 million, up to RO16.41 billion, benefiting from the rise in stock prices on the one hand and the inclusion of a number of companies on the other hand, including an increase in the capital of Oman Oil Refineries and Petroleum Industries (Orpic) amounting to OMR509.5 million. It was included in the third market, where usually closed companies included.
Statistics indicated that the market value of the closed companies rose by the end of February to OMR5.98, compared to OMR5.46 billion in January.
Dividends
Seventy companies listed on the Muscat Securities Market (MSM), which approved their annual financial statements so far, will pay dividends to shareholders. More companies are expected to announce dividends this month.
On February 24, National Pharmaceutical approved 10 per cent dividend or 10 baisas per each share. Areej Vegetable Oils & Derivatives approved 35 per cent cash dividend, in addition to 50 per cent stock dividend.
Shareholders forecast attractive dividends that are expected to reflect positively on share prices, especially if oil prices improved in the world market. The dividends that have been announced reflect the improvements made by the companies in their financial statements despite slump in oil prices in 2015 compared to 2014 and 2013.
Investors are expecting cash dividends from Oman Refreshments (100 per cent) , Oman Cables (90 per cent) and Oman Chromite (10 per cent).
Shell Oman Marketing is expected to top the list of companies in paying dividends. The company is expected to pay 106 per cent. Al Maha Oil Products Marketing intends to distribute 100 per cent cash dividend.
Omantel said that the general assembly will approve 60 per cent cash dividend at its meeting on March 24 and 40 per cent at its meeting next August. Oman Hotel Management said that it will distribute 90 per cent dividend. Salalah Mills said that it will meet on March 31 and will approve 65 per cent cash dividend.
Oman Oil Marketing said that it will distribute 60 per cent cash dividend. Raysut Cement said that it will distribute 50 per cent cash dividend. United Energy said that it will distribute 50 per cent cash dividend for normal shareholders and 54.5 per cent for premium shareholders.
