Muscat Securities Market
-
Upload
praful-anchaliya -
Category
Economy & Finance
-
view
3.166 -
download
4
description
Transcript of Muscat Securities Market
Market-Pre-Open
Market-Open
Muscat Securities Market
Financial ManagementGroup-5
PRAFUL ANCHALIYASHALLY RATHIVIJAY SANGTANISANYAM SINGHALPOONAM GAUNIYAL
Agenda
Economy of Oman Briefing
Market’s Profile General view Graphical view
Companies No. of companies Listing Procedure Merits & Demerits
Indices 30 Index objectives
Foreign Ownership Procedure & Regulations Incentives
3 Companies BankMuscat Oman United Insurance Company SAOG Oman Oil Marketing Company SAOG
Bibliography Credits
Oman's Economy
• Improved significantly since 1999 due to rising oil prices
• Moved ahead with privatisation of utilities
• Development of a body of commercial law to facilitate foreign investment
• Implementation of policies to reduce dependence on oil and expatriate labour
• Large amount of liquidity has led to development of mega projects like Industrial estates in Sohar
Muscat Securities Market
• Established by the Royal Decree issued on 21 June 1988
• Main purpose:
- Regulate and control Omani securities market
- Participate effectively for setting up Sultanate’s financial sector
• One of the highest regulated markets in the region
• Listed companies are required to publish quarterly financial results in accordance with International Accounting Standards
Muscat Securities Market
• Capital Market Authority (CMA), the regulatory body for MSM
• MSM is a govt. entity, financially and administratively independent from CMA but subject to its regulation
• Introduced new mechanisms to encourage stable dealings in securities and attract foreign investments
Bar Graph of MSM
Companies Listed
• Banking and Investment Sector : 69
• Industry Sector : 89
• Service Sector : 61
Rules for Listing
• The paid-up capital shall not be less than RO 2 million
• Company must have achieved a Net Profit during the last two years
• No. of days the company’s shares are traded should not be less than 30 and share turnover should not be less than 5% per annum
Listing Procedure (Omani Co.)
• Submit listing application along with :
- Commercial Register Certificate issued by Commercial Registrar
- Copies of company’s memorandum, article of association and the prospectus
- Copy of minutes of general meeting
- List of names of shareholders
Listing Procedure (Non-Omani Co.)
• Listing application should include :
- Company Information: name, location of head office, authorized signatories, date and place of constitution and capital
- Board of directors information: names of directors and executive management, remuneration, method of election and removal, no. of shares owned by each
Non-Omani Co. (Cont..)
• Info. on shares and shareholders
• Info. on company’s business: nature, changes and developments in last 3 years and its effects, future expansions
• Financial Statements: audited financial statements for last 3 years
Merits
• Creating a market for the company's shares
• Enhancing the status and financial standing of the company
• Increasing public awareness and public interest in the company and its products
• Providing the company with an opportunity to implement share option schemes for their employees
Merits (Cont..)
• Accessing to additional fund raising in the future by means of new issues of shares or other securities
• Facilitating acquisition opportunities by use of the company's shares
• Offering existing shareholders a ready means of realizing their investments
Demerits
• Increasing accountability to public shareholders
• Increasing costs in complying with higher level of reporting requirements
• Becoming more vulnerable to an unwelcome takeover
• Need to observe and adhere strictly to the rules and regulations by governing bodies
Demerits (Cont...)
• Relinquishing some control of the company following the public offering
• Suffering a loss of privacy as a result of media interest
Indices• MSM-30
- Established in 1992- Number of companies in each sector:
a) Banks & Investment : 10
b) Industry : 10
c) Service & Insurance : 10
Foreign Ownership
• Principal investment is in Oil sector
• Investments encouraged in areas like industry, agriculture and fishing through an initial 5-year tax exemption (subject to renewal)
• Foreign investments at MSM accounts for 30% in 2008 as compared to 16% in 2005
Foreign Ownership (Cont…)
• Foreign (non-GCC and non-arab) shareholding at MSM increased from 6.7% in 2005 to 12% in 2007
• Off late Raysut cement, Oman cables, Omantel and Bank Muscat have attracted foreign portfolio investments
3 Companies
Muscat Securities MarketOman United
Insurance CompanyOman Oil Marketing Company
Bank Muscat
BankMuscat
• The biggest financial service provider in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management
• 119 branches and about 320 ATMs and 91 CDMs
• Awarded “Best Bank in Oman” & “Gulf Excellence Award”
BankMuscat
• First Bank to receive ISO certification in the middle east region
• Plays a key role in development of investment banking & treasury
Financials
• Asset worth over USD 15 Billion
• Major & Strategic stakes:– 49% of share in BMI Bank in Bahrain– 35% in Saudi Pak Commercial Bank– 2.67% in HDFC Bank in India
• Dominant leadership position with an 87% share of the asset under management
• The dividend payout ratio has increased from 10%-15%
Graphical Representation
2009Righti st ’s View
Graphical Representation
2003
2004
2005
Left ist ’s View
Left ist ’s View
Left ist ’s View
Dividend Details
• 2008-09: Cash dividend aggregating to RO 21.5 million. (Rightist’s view)
• 2007: Cash dividend aggregating to RO 29.1 million.
• 2006: Cash dividend aggregating to RO 26.5 million.
• 2005: Cash Dividend aggregating to RO 14.9 million. (Leftist’s view)
• 2004: Cash Dividend aggregating to RO 12.8 million. (Leftist’s view)
• 2003: Cash Dividend aggregating to RO 7.3 million. (Leftist’s view)
OUIC, SAOG
• Established in 1985 to cater the future needs of general public and industrial, business and health medical sectors
• In 1999 it created auto repair division mainly to maximize OUIC’s motor insurance business
• Holds a market share of 14.5%
OUIC, SAOG
• Despite competition OUIC has achieved 25% growth in premium income
• Suffered huge losses in 2007 due to the claims after unusual weather conditions
Graphical Representation
2003
2004
2005
Left ist ’s View
Left ist ’s View
Middle-of-the-road View
Dividends
Leftist’s View
Middle-of-the-road View
Leftist’s View
OOMC, SAOG
• Established in 1959, now have over 100 employees
• 24% of retail market share with filling stations
• 50% owners of oil storage & distribution terminal, functioning in joint venture (JV) with Al- Maha supplying premier motor spirit, regular motor spirit, gas oil, jet A-1 and kerosene
OOMC, SAOG
• Omanoil caters to different segments of lubricant market:
• Highstreet• Commercial & Industrial• Rigs & Crushes• Franchise Workshops• Quick Lube - Lube Plus
Financials
• Retail business registered the biggest growth of 40%
• The performance of commercial and lubricant business has contributed to 15% and 23% increase in volume of sales
• Increase in profit after tax to RO 1.61 million
• Total sales volume has increased by 22%
Graphical Representation
2003
2004
2005
Middle-of-the-road View
Left ist ’s View
Left ist ’s View
Dividend Details
• 2007 - 47.5% CASH DIVIDEND i.e. RO 0.470 FOR RO 1 aggregating to RO 3.06m
• 2006 - 45% CASH DIVIDEND i.e. RO 0.450 FOR RO 1 aggregating to RO 2.9m
• 2005 - 30% CASH DIVIDEND i.e. RO 0.450 FOR RO 1 aggregating to RO 1.93m (Middle-of-the-road view)
• 2004 - 26% CASH DIVIDEND i.e. RO 0.260 FOR RO 1 aggregating to RO 1.67m (Leftist’s view)
• 2003 - 25% CASH DIVIDEND i.e. RO 0.250 FOR RO 1 aggregating to RO 1.61m (Leftist’s view)
Bibliography
• http://www.msm.gov.om/
• http://www.bankmuscat.com/
• http://www.ouic-oman.com/
• http://www.oomco.com/
• http://www.gulfbase.com/
THANK YOU
Market-Closed