Muscat Securities Market


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All about Muscat Securities Market

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Muscat Securities Market

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