News Column

Muscat Securities Market rises marginally

July 1, 2014

Agencies



Muscat:Muscat Securities Market index yesterday added 12.18 points to close at 7020.45 points, comprising a rise by 0.17 per cent. The trading value on Tuesday stood at OMR5.21 million, registering a decline by 66.93 per cent compared to the last session, which stood at OMR15.75 million.



The report released by MSM pointed out that the market capitalisation rose by 0.18 per cent to reach about OMR14.94 billion.



The report added that the value of shares bought by non-Omani investors reached OMR679,000, while the value of shares sold by non-Omani investors reached OMR953,000. The net non-Omani investment fell by 5.27 per cent to OMR274,000.



Dubai shares rebound

Dubai stocks ended three days of declines after a mortgage provider part-owned by Emaar Properties proposed a new debt deal, boosting shares in the developer of the world's tallest tower.



The DFM General Index gained 3.2 per cent to 4,067.67 at the close in the emirate, after declining as much as 5.4 per cent. Emaar, which has the biggest weighting on the index and holds 45 per cent of Amlak Finance's shares, rallied 5.8 per cent to Dh8.90, ending a three-day rout. The lender is proposing an initial 20 per cent payment to depositors, or about Dh2 billion ($545 million), and to repay the remaining debt owed over 12 years, its spokesman said by e-mail.



"Amlak's news is positive for Emaar," Nayal Khan, head of institutional sales and trading at the Naeem Holding brokerage in Dubai, said by e-mail. "It's exposure to Amlak was considered impaired by the market."



Real-estate companies in Dubai have benefited from a rebound in property prices, almost six years after the global credit crisis triggered one of the world's worst property crashes. Prices for mid-range apartments in the emirate rose 43 per cent last year, and another 4.7 per cent so far this year to May, according to Cluttons data compiled by Bloomberg. Amlak was one of the two main mortgage providers in the emirate before 2009.



Bear market

The lender, which offers mortgages that comply with Islamic law, is restructuring more than $2 billion of loans. Its shares have been suspended from trading since 2008. Depositors have been given two months from a June 5 meeting to assess and accept the package, the spokesman said, declining to be identified because of company policy.



The Dubai market's 14-day relative-strength index rose to 35.9 yesterday from a low of 27.5 on June 24. A reading below 30 indicates to some technical analysts that an asset is oversold and poised to reverse. The index entered a bear market last week after slumping 20 per cent to June 23 from a high in May. The measure declined 22 per cent last month.



Dubai developer Limitless, a Dubai-based developer, has asked creditors to defer the first installment on a $1.2 billion loan until the end of 2016, according to three people familiar with the matter.



The company has also requested that banks reduce the margin on the facility, said two of the people, who asked not to be identified because the information is private. The loan currently pays a profit rate equivalent to 175 basis points over the London interbank offered rate, two bankers told Bloomberg News in May last year.


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Source: Times of Oman


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