The MSM 30 index closed 0.07 per cent lower for the week ended February 28 to close at 5,976. The financial index declined 0.36 per cent, while services index gained 2.81 per cent and industry index gained 2.30 per cent. Food companies were the top gainers in the previous week as they stand to gain from government reimbursement for losses incurred in earlier years.
Port Services Corporation reported a robust 30 per cent year-on-year increase in net profit to OMR5.65 million driven by a 13.6 per cent year-on-year increase in operating revenue. The company's concession agreement with the Government of Oman has been extended until December 31. In addition, Port Services Corporation has signed an memorandum of understanding (MoU) with Ministry of Transport and Communication to manage and operate Port of Khasab. The company has declared a cash dividend of 55 per cent for 2012 which will work out to a dividend yield of 9.9 per cent at its last traded price.
Gulf International Chemicals posted a 8.5 per cent year-on-year decline in net profit to OMR302.000 while total revenue fell 5.2 per cent year-on-year to OMR3.25 million.
The board of directors has proposed to pay a cash dividend of 14 baisas per share for 2012. The stock trades at 13.2 times its 2012 EPS of 14 baisas and offers a cash dividend yield of 7.57 per cent at its last traded price.
Gulf Investment Services has declared a cash dividend distribution of 6 per cent for 2012 which works out to a dividend yield of 5.7 per cent at its last traded price.
The company reported a net profit of OMR1.29 million for 2012 against a net loss of OMR345,000 in 2011. GCC markets ended on a mixed note led by Kuwait and Abu Dhabi while Qatar and Saudi indices ended lower in the previous week.
The UAE central bank governor indicated that recently announced mortgage restrictions may be eased following recommendations by commercial banks to raise the limits for mortgage lending to expatriates to 75 per cent of the value of first home and 60 per cent for the second. For the United Arab Emirates (UAE) nationals, they recommend 80 per cent of the value of the first home and 65 per cent for the second. We expect such a development to be positive for the real estate sector and banks.
RAK Properties posted a 35.6 per cent year-on-year increase in 2012 net profit to Dh147.1 million. Total sales rose 12.5 per cent year-on-year to Dh596 million. The company has a positive outlook for 2013 with plans to develop hotels in the Mina Al Arab project and two residential towers in Abu Dhabi.
The board has approved distribution of 5 per cent cash dividend for 2012 which works out to a dividend yield of 8.8 per cent at its last traded price. The stock trades at 0.32x its latest reported book value per share.
Kuwait Food Group (Americana) is a franchising and restaurant management company based in Kuwait with franchise rights to KFC, Pizza Hut, Hardees and TGI Fridays.
During 2012, the company reported a 12.3 per cent year-on-year growth in revenues to 810 million Kuwaiti dinars, while operating income rose 18.7 per cent year-on-year to 74 million dinars. However, net profit was negative impacted by 6.7 million dinars from investment losses, which led to a year-on-year net profit decline of 4.4 per cent to 46 million dinars. The stock trades at a price earning multiple of 15.9x its 2012 earnings .
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