Oman's banks, telecom service providers perform well in first quarter

02/05/2016 08:03 AST

Omani banksand telecommunication service providers have performed well among listed firms on the Muscat bourse during the first quarter of 2016.

Reported growth in total net earnings by Omani banks rose 3.9 per cent in the first quarter (adjusted profit), over the same period last year.

Additionally, both Oman’s conventional and Islamic financial institutions achieved a robust 12.45 per cent (OMR2.27 billion) growth in credit of OMR20.54 billion for the 12-month period ending in February this year. The credit growth was largely aided by demands for financing from the corporate sector, including government-owned entities seeking to fund large projects, and partly by retail customers.

Also, growth in overall credit was more or less in line with the pace of growth witnessed last year, although plunging oil revenues impacted the performance of manufacturing firms.

Of the total credit, OMR18,692.7 million was contributed by conventional banks, while the share of Islamic banks and window operations contributed the remaining OMR1,851.9 million. Similarly, telecom and investment holding firms performed well in the first quarter. However, net earnings of manufacturing firms fell in the first quarter of 2016, compared to the same period last year.

“First quarter looks like an indicator of performance in the remaining quarters. However, the initial expectation of market analysts was not that optimistic. Numbers are better than market expectations,” said a market analyst, who did not wish to be identified.

Oman has some 130 listed companies on the Muscat Securities Market. Muscat bourse surges

The Muscat bourse surged by 8.69 per cent, or 475.3 points, to touch 5467.72 points in April this year. The recovery was mainly aided by a firm trend in the crude oil market, which prompted investors to reenter the market.

Market turnover reached OMR126.04 million, with 722.28 million shares changing hands in April. Also, market capitalization touched OMR17.01 billion by end-April, 2016.

Times of Oman