01 January 2011
MUSCAT: BankMuscat, Renaissance Services, ahlibank and Dhofar International Development and Investment Holding (DIDIC) were the star performers among MSM 30 index stocks in the just-concluded year in terms of returns on investment, a leading brokerage firm said in a research note.
BankMuscat was the best performing stock with its robust 49.7 per cent returns to investors -- 25 per cent each stock and cash dividends and a 45.9 per cent capital appreciation last year, Gulf Baader Capital Markets said in its research note. BankMuscat's closing price was 962 baisas for end-December, 2010, which is against 824 baisas by the end of 2009. However, the bank's stock price after adjusting for stock dividend by end-December 2009 was only 659 baisas.
This was followed by Renaissance Services share with a 46.4 per cent return -- 12 per cent cash dividend and 44.8 per cent capital appreciation. Renaissance Services closed last year at RO 1.108, as against 2009 closing price of 765 baisas.
Similarly, ahlibank's stock appreciated by 40.3 per cent and it paid a stock dividend of five per cent and seven per cent cash dividend. Ahlibank stock closed at 290 baisas, against 217 basias by the end of 2009. DIDIC's stock appreciated by 32.3 per cent and the company paid a cash dividend of 30 per cent.
In fact, stock-specific activity prevailed on MSM 30 index stocks on the local bourse. The MSM 30 general index, the barometer of market movement, moved up by 6.06 per cent to close the year at 6,754.92 points.
Gulf Baader report said that fifteen MSM 30 companies have offered positive returns to investors, while the remaining 15 companies' returns were in negative territory. The worst performers were Al Anwar Holding, Global Financial Investment, Gulf Investment Services, Financial Services and Oman and Emirates Investment Services, with negative returns of 39.8 per cent, 37.5 per cent, 31.5 per cent, 25.8 per cent and 24.9 per cent, respectively.
Meanwhile, the total trading on the Muscat Securities Market last year touched 302.23 million shares with a turnover of RO1,317.25 million. Market analysts expect the MSM to start trading on a firm note early next year on the back of better flow of portfolio funds from foreign institutions and rising oil prices.
Foreign institutions are likely to allocate more funds next year mainly due to the fact that emerging markets are overheated now. They will allocate more funds to frontier markets like Oman, which we have already seen in December.
The net foreign investment in Omani bourse in December was positive. Once foreign institutions enhance their investment portfolio in Oman, other GCC funds will follow suit.
MUSCAT: BankMuscat, Renaissance Services, ahlibank and Dhofar International Development and Investment Holding (DIDIC) were the star performers among MSM 30 index stocks in the just-concluded year in terms of returns on investment, a leading brokerage firm said in a research note.
BankMuscat was the best performing stock with its robust 49.7 per cent returns to investors -- 25 per cent each stock and cash dividends and a 45.9 per cent capital appreciation last year, Gulf Baader Capital Markets said in its research note. BankMuscat's closing price was 962 baisas for end-December, 2010, which is against 824 baisas by the end of 2009. However, the bank's stock price after adjusting for stock dividend by end-December 2009 was only 659 baisas.
This was followed by Renaissance Services share with a 46.4 per cent return -- 12 per cent cash dividend and 44.8 per cent capital appreciation. Renaissance Services closed last year at RO 1.108, as against 2009 closing price of 765 baisas.
Similarly, ahlibank's stock appreciated by 40.3 per cent and it paid a stock dividend of five per cent and seven per cent cash dividend. Ahlibank stock closed at 290 baisas, against 217 basias by the end of 2009. DIDIC's stock appreciated by 32.3 per cent and the company paid a cash dividend of 30 per cent.
In fact, stock-specific activity prevailed on MSM 30 index stocks on the local bourse. The MSM 30 general index, the barometer of market movement, moved up by 6.06 per cent to close the year at 6,754.92 points.
Gulf Baader report said that fifteen MSM 30 companies have offered positive returns to investors, while the remaining 15 companies' returns were in negative territory. The worst performers were Al Anwar Holding, Global Financial Investment, Gulf Investment Services, Financial Services and Oman and Emirates Investment Services, with negative returns of 39.8 per cent, 37.5 per cent, 31.5 per cent, 25.8 per cent and 24.9 per cent, respectively.
Meanwhile, the total trading on the Muscat Securities Market last year touched 302.23 million shares with a turnover of RO1,317.25 million. Market analysts expect the MSM to start trading on a firm note early next year on the back of better flow of portfolio funds from foreign institutions and rising oil prices.
Foreign institutions are likely to allocate more funds next year mainly due to the fact that emerging markets are overheated now. They will allocate more funds to frontier markets like Oman, which we have already seen in December.
The net foreign investment in Omani bourse in December was positive. Once foreign institutions enhance their investment portfolio in Oman, other GCC funds will follow suit.
© Times of Oman 2011
