17 July 2011
The MSM 30 index rose 0.18 per cent in the week ended July 14 to close at 5,987, led by gains in the financial index while the industry and services indices ended in the red. Market breadth was negative as 18 stocks advanced while 22 stocks declined.
Market turnover was 17.1 per cent lower compared to that in the previous week. Key factors that influenced market movement in the previous week include:
Global equity markets continued to be volatile dominated by a US debt standstill, sputtering US economic growth, rising credit default spread of sovereign debt from other European Union (EU) members such as Italy and slower second quarter sequential GDP growth in China Gold scaled a new 52-week high of $1,594/oz as EU debt fears and slowing US economic growth increased its safe haven appeal Bank Sohar reported a 22 per cent year-on-year growth in net profit in second quarter of 2011 at RO3.9 million driven by a 21 per cent year-on-year growth in total operating income.
Sequentially, net profit was higher by 26 per cent while total operating income increased 9.0 per cent. The bank's net loans and advances grew 5.5 per cent quarter-on-quarter while customer deposits rose 4.3 per cent quarter-on-quarter.
BankMuscat reported a 29.6 per cent year-on-year growth in second quarter of 2011 net profit at RO29.3 million driven by lower operating expenses and lower provisions for credit losses.
Net interest income rose 19 per cent year-on-year at RO52.2 million while non interest income rose 11 per cent year-on-year. Net interest income slightly declined compared to second quarter of 2011 as the bank saw a 14 per cent increase in customer deposits while loan book growth was 6.7 per cent quarter-on-quarter.
Non-interest income declined 19 per cent quarter owing to higher non-interest income in second quarter from dividends and realised gains on investments. Net loans and advances were higher by 6.5 per cent at the end of first half of 2011 from the beginning of the year. The medium term outlook for BankMuscat is bullish.
Al Omaniya Financial Services (AOFS) reported a 10 per cent year-on-year growth in net profit in second quarter of 2011 at RO1.09 million, which is also higher 12.5 per cent quarter-on-quarter.
Net disbursements increased 4.5 per cent quarter-on-quarter to RO138 million while total borrowings increased 9.9 per cent quarter-on-quarter. Net profit rose 10 per cent year-on-year in first half of 2011 to RO2.07 million.
The medium term outlook for this stock is bullish but investors should wait for a correction to enter into this stock. Al Omaniya Financial Services has the highest quality lease portfolio among local leasing players as seen by its lowest impaired lease/gross lease ratio of 1.62 per cent and impaired lease provision coverage of 243 per cent at the end of June 30, 2011.
Gulf Cooperation Council (GCC) markets ended the week on a mixed note led by Abu Dhabi which closed 0.39 per cent higher while Saudi Arabia declined 1.57 per cent. Telecom and banking sectors were the top gainers in Abu Dhabi while the Saudi market fell mainly due to a 4.0 per cent fall in Safco post its second quarter 2011 results.
Yansab reported an impressive 92 per cent year-on-year growth and 34 per cent quarter-on-quarter increase in second quarter of 2011 net profit to SAR963 million led by higher average realisation for various petrochemicals as well as an uptake in volumes.
Safco however reported disappointing results for second quarter 2011 with net profit lower by 13 per cent year-on-year and 5.0 per cent lower quarter-on-quarter on account of lower average realisation of urea and lower sales volume. Saudi cement companies reported encouraging results in the second quarter on the back of strong demand and firm prices.
Yamama Cement saw a 15 per cent year-on-year increase in second quarter of 2011 net profit while Yanbu Cement reported a growth of 32 per cent year-on-year in net profit.
The MSM 30 index rose 0.18 per cent in the week ended July 14 to close at 5,987, led by gains in the financial index while the industry and services indices ended in the red. Market breadth was negative as 18 stocks advanced while 22 stocks declined.
Market turnover was 17.1 per cent lower compared to that in the previous week. Key factors that influenced market movement in the previous week include:
Global equity markets continued to be volatile dominated by a US debt standstill, sputtering US economic growth, rising credit default spread of sovereign debt from other European Union (EU) members such as Italy and slower second quarter sequential GDP growth in China Gold scaled a new 52-week high of $1,594/oz as EU debt fears and slowing US economic growth increased its safe haven appeal Bank Sohar reported a 22 per cent year-on-year growth in net profit in second quarter of 2011 at RO3.9 million driven by a 21 per cent year-on-year growth in total operating income.
Sequentially, net profit was higher by 26 per cent while total operating income increased 9.0 per cent. The bank's net loans and advances grew 5.5 per cent quarter-on-quarter while customer deposits rose 4.3 per cent quarter-on-quarter.
BankMuscat reported a 29.6 per cent year-on-year growth in second quarter of 2011 net profit at RO29.3 million driven by lower operating expenses and lower provisions for credit losses.
Net interest income rose 19 per cent year-on-year at RO52.2 million while non interest income rose 11 per cent year-on-year. Net interest income slightly declined compared to second quarter of 2011 as the bank saw a 14 per cent increase in customer deposits while loan book growth was 6.7 per cent quarter-on-quarter.
Non-interest income declined 19 per cent quarter owing to higher non-interest income in second quarter from dividends and realised gains on investments. Net loans and advances were higher by 6.5 per cent at the end of first half of 2011 from the beginning of the year. The medium term outlook for BankMuscat is bullish.
Al Omaniya Financial Services (AOFS) reported a 10 per cent year-on-year growth in net profit in second quarter of 2011 at RO1.09 million, which is also higher 12.5 per cent quarter-on-quarter.
Net disbursements increased 4.5 per cent quarter-on-quarter to RO138 million while total borrowings increased 9.9 per cent quarter-on-quarter. Net profit rose 10 per cent year-on-year in first half of 2011 to RO2.07 million.
The medium term outlook for this stock is bullish but investors should wait for a correction to enter into this stock. Al Omaniya Financial Services has the highest quality lease portfolio among local leasing players as seen by its lowest impaired lease/gross lease ratio of 1.62 per cent and impaired lease provision coverage of 243 per cent at the end of June 30, 2011.
Gulf Cooperation Council (GCC) markets ended the week on a mixed note led by Abu Dhabi which closed 0.39 per cent higher while Saudi Arabia declined 1.57 per cent. Telecom and banking sectors were the top gainers in Abu Dhabi while the Saudi market fell mainly due to a 4.0 per cent fall in Safco post its second quarter 2011 results.
Yansab reported an impressive 92 per cent year-on-year growth and 34 per cent quarter-on-quarter increase in second quarter of 2011 net profit to SAR963 million led by higher average realisation for various petrochemicals as well as an uptake in volumes.
Safco however reported disappointing results for second quarter 2011 with net profit lower by 13 per cent year-on-year and 5.0 per cent lower quarter-on-quarter on account of lower average realisation of urea and lower sales volume. Saudi cement companies reported encouraging results in the second quarter on the back of strong demand and firm prices.
Yamama Cement saw a 15 per cent year-on-year increase in second quarter of 2011 net profit while Yanbu Cement reported a growth of 32 per cent year-on-year in net profit.
© Times of Oman 2011
