The MSM 30 index closed 1.84 per cent higher for the week ended March 14, to close at 6,104. The financial index gained 3.40 per cent, while services index gained 2.04 per cent and industry index gained 1.33 per cent.
ONIC was one of the top gainers in the previous week supported by volume expansion.
Oman Investment Fund has recently acquired the entire 41.13 per cent stake held by Dubai Insurance Group at a price of 310 baisas per share.
ONIC Holding reported a consolidated net profit of OMR4.24 million for 2012 compared to a net profit of OMR1.52 million in the financial year 2011.
The parent company reduced its investment portfolio from OMR8.9 million at the end of 2011 to OMR4.26 million at the end of 2012. ONIC trades at 1.03 times its latest reported book value of 306 baisas. The board approved a cash dividend distribution of 15 per cent for 2012 which works out to a dividend yield of 4.7 per cent at its last traded price. We have a bullish view on this stock.
NBO gained 3.4 per cent in the previous week supported by good volumes. The bank achieved 19 per cent year-on-year growth in net profit to OMR40.7 million helped by a 6.9 per cent year-on-year growth in total operating income and lower provisioning for bad loans.
Loan book grew 14.4 per cent year-on-year to OMR1.9 billion while customer deposits increased 17.9 per cent year-on-year to OMR1.6 billion. The stock carries dividend yield of 5.8 per cent. The stock trades at 1.09 times its latest reported book value of 275 baisas.
Al Sharqia Investment owns sizeable holdings in Al Jazeira Services, National Gas and Oman National Engineering & Investment. The company reported an 86 per cent year-on-year increase in net profit of OMR688,000 (excluding a one-time write off of pre-operative expenses in a new project) in 2012 while operating income increased 34.5 per cent year-on-year.
The company is expected to see a sharp increase in dividend income in 2013 boosted a sharp hike in dividend Al Jazeira Services. The stock trades at 0.6 times its latest reported book value of 205 baisas.
The company declared 5 per cent cash and 5 per cent % stock dividend for 2012.
GCC markets look up
All the seven GCC bourses have ended in the green led by Kuwait and UAE markets.
Qatar Navigation reported a net profit of 835 million Qatari riyals for 2012, which is 17 per cent higher year-on-year. Total operating income for the period rose to 2.35 billion riyals, 7 per cent higher year-on-year.
The stock trades at a P/E multiple of 8.9x its 2012 earnings per share of 7.29 riyals.
The board of directors has recommended cash dividends of 3.75 riyals per share for the year, which implies a dividend yield of 5.8 per cent.
Dubai Islamic Bank shareholders have approved its plan to acquire 100 per cent of Islamic housing finance provider Tamweel, in which the bank is already a majority shareholder with a 58.2 per cent stake.
Ten new shares of DIB is being offered for 18 shares of Tamweel, with offer to shareholders open till March 16, 2013.
The fair value set for DIB is Dh2.25 and for Tamweel is Dh1.25 for the transaction.
The fair value set for the transaction for Tamweel is at a discount to its book value per share of Dh2.25. We have a target price of Dh2.50 for DIB.
Disclaimer: This column expresses only the views of the contributor and investing in stocks carries risk of financial loss for which the contributor is in no way liable.