MSM rises marginally

10/01/2013 13:27 AST

The MSM30 index ended on a positive note and closed at 5800.91 points, up by 0.38 per cent. Gulf Investment Services was the most active in terms of volume, while Bank Muscat was the most active in terms of turnover. Oman Ceramics was the top gainer for the day and closed up by 9.98 per cent, while HSBC Bank Oman was the top loser for the day and closed down by 2.01 per cent.

A total number of 1,912 trades were executed in today's trading session generating turnover of OMR6.02 million with over 28.95 million shares traded. Out of 49 traded stocks, 26 advanced, five declined and 18 remained unchanged. At the session close, foreign investors switched to net buyers for OMR390,000 followed by GCC and Arab investors for OMR255,000, while Omani investors were net sellers for OMR646,000 worth of shares.

Financial Sector Index closed at 6756.01 points, up by 0.55 per cent. Gulf Investment Services, ONIC Holding, Bank Muscat, Al Anwar Holding and Oman United Insurance increased by 3 per cent, 1.70 per cent, 1.69 per cent, 1.44 per cent and 1.44 per cent respectively. HSBC Bank Oman, Financial Services and Bank Dhofar declined by 2.01 per cent, 1.43 per cent and 0.28 per cent respectively.

The Industrial Sector Index was up by 1.03 per cent and closed at 7463.32 points. Oman Ceramic, A'Saffa Foods, Dhofar Cattlefeed, Oman Flour Mills and Salalah Mills increased by 9.98 per cent, 5.56 per cent, 4.58 per cent, 3.16 per cent and 2.50 per cent respectively. Galfar Engineering was the only loser in the sector and was down by 0.54 per cent to close at 372 baisas.

Services Sector Index closed at 2965.24 points up by 0.18 per cent. OIFC, Oman Telecom and Renaissance Services increased by 1.33 per cent, 0.96 per cent and 0.20 per cent respectively. Al Jazeira Services was the only loser and was down by 0.26 per cent to close at 387 baisas.

UAE mortgage

Dubai-based mortgage provider Tamweel's

Islamic bonds are rallying more than Gulf Cooperation Council peers on bets a takeover by Dubai Islamic Bank will cushion the effects of new curbs on home loans.

The yield on the company's 2017 notes fell 44 basis points, or 0.44 percentage point, this month to 3.32 per cent yesterday, an all-time low, as Dubai Islamic offered to buy the 42 per cent stake it doesn't already own in Tamweel via a share swap. That beat the eight basis-point drop to 2.81 per cent in HSBC/Nasdaq Dubai's GCC Financial Services US Dollar Sukuk Index.

Dubai Islamic's January 3 announcement came four days after the United Arab Emirates central bank restricted the size of home loans that expatriates can get from local banks to 50 per cent of the value of their first purchase, down from no limit previously. The move is set to temper the pace of the recovery in Dubai's property industry, potentially avoiding a repeat of the crash sparked by the 2008 global credit crisis, Quantum Investment Bank said.

"A full consolidation of the two banks will be a positive development for Tamweel as it will provide better access to funding and more headroom to better manoeuvre the challenging real estate market conditions," Apostolos Bantis, from Commerzbank, said.

Times of Oman