Download - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
MUSCAT SECURITIES MARKET
ECONOMIC AND POLITICAL DEVELOPMENTS
The Omani economy continued to drive
growth and development to add new block to
the blocks of economic development, thanks
to prudent financial and economic policies
implemented by the Sultanate under its fiveyear
plans, which have proven their ability to
cause distinctive shift in Oman's economy.
This growth was enhanced by the production
volume of oil and its prices in 2010, as the
production of Oman rose by 6.6% during the
year with an average daily production of 862.7
thousand barrels per day compared with 809.6
thousand barrels per day during 2009.
Likewise, the average oil price per barrel in
2010 increased by 31.06% to $72.28
compared with $55.15 during 2009.
At the end of 2010 the eighth five-year plan
was adopted, Episode IV of the long-term
development strategy (Oman vision 2020),
which aims to continue the investment
balance, sustainable growth, human
development and economic diversification.
This plan aims to enhance growth
opportunities through achieving growth rates
not less than annual 3% at fixed prices during
the plan period and pursue low inflation rates
not exceeding 4% annually. During the plan
period Oman's economy is expected to record
a growth rate in GDP estimated at annual rate
of 6% at current prices and 5% at fixed prices.
The plan also includes investments worth
(77.20) billion Dollars, an increase of 113%
from planned in the seventh five-year plan
indicating a promising Oman's economy in the
coming period.
The Omani economy Outlook in 2011, with the
expectation of stable and upward tendency of
oil prices, as well as with the economic and
financial policies supporting national economic
stability and growth, the Sultanate has raised
expenditure over 2011 to( 21.12)billion Dollars
versus (18.65) billion Dollars in 2009, an
increase of 13.2%. Revenues expected from
budget 2011 are estimated at (18.65) billion
Dollars compared with (16.57) billion Dollars in
2009, an increase of 2.1 billion Dollars or 14%.
Revenues from both oil and gas account for
81% of total income while current and capital
revenues account for 19%. The expected
revenues in 2011are based on an average
price per barrel of $58. This means the
expected deficit in the budget of the year will
amount to $(2.20) billion. Although the deficit
is relatively high in absolute value, but as a
percentage of GDP is safe and within
economically acceptable boundaries, and it is
believed that this will be covered during the
year from actual revenue of projected oil
prices because current oil prices are higher
than the prices on which the expected
revenues were based. In case the revenues
are less than expected the deficit would be
covered from the general state reserves.
As for Muscat Securities Market, it is worth
mentioning that trading volume reached
US$3421.6 million in 2010 compared with
US$5931.8 million in 2009, thus decrease of
42.3%. Meanwhile, the MSM price index
increase from 6368.80 points at the end of
2009 to the level of 6754.92 points at the end
of 2010, registering an increase of 6.06%.
The MSM witnessed traded volume of 3013.17
million shares during the year 2010 recording
a decrease of 50.34% compared with 6091
million traded shares as on 2009. During the
year 2010 the value of the traded shares was
US$ 3421.6 million with a decrease of 43.27%
compared with US$ 5380 million during the
year 2009. The Market capitalization increased
in 2010 recording US$ 28.3 billion compared
with US$23.6 billion during 2009.
The MSM index rose from 6368 points, during
2009, recording 6754.92 points in 2010 with an
increase of 6.06%. During 2010, the Muscat
Securities Market scored the third grade from
among the GCC exchanges.*
Information obtained from the Exchange.
OMAN ECONOMIC CHARTS AND TABLES
Market Value
No of Shares No of Bonds Trading Value No. of (Capitalization)
Period MSM index Traded (millions) Traded (millions) $ (millions) Transactions $ (millions)
2005 2006 2007 2008 2009 2010
1989 -- 6 - 24.7 3,459 982.2
1990 -- 25.3 - 122.1 13,230 1,271.8
1991 1,191.8 25.4) - 153.2 13,940 1,503.9
1992 1,130.1 17.9 0.065 109.3 8,313 1,514.1
1993 1,137.1 34.4 0.819 216.9 7,246 1,605.0
1994 1,461.6 60.8 0.144 327.8 14,848 3,006.9
1995 1,581.3 55.7 0.057 283.3 26,203 3,416.5
1996 1,993.6 128.3 0.759 695.2 51,070 4,212.5
1997 4,805.8 410 0.105 4,195.9 161,597 8,670.4
1998 2,284.7 284 0.329 2,376.3 145,004 5,883.7
1999 2,502.6 122.7 0.795 504.6 125,609 5,874.6
2000 2,012.0 146.1 0.070 558.4 76,654 5,058.6
2001 1,520.8 127.9 10.4 451.4 61,882 4,471.7
2002 1,918.6 191.8 10.9 600.7 98,655 5,152.4
2003 2,726.71 315.2 14.2 1,539.6 189,423 7,245.6
2004 3,375.05 347.3 6.6 1,986.3 255,975 9,433.7
2005 4,875.11 508.1 3.1 3,622.9 393,649 15,267.1
2006 5,581.57 1,112.8 2.5 3,482.7 320,103 16,156.1
2007 9,035.48 3,422.2 1.4 6,913.5 570,768 26,679.7
2008 5,441.12 4,440.8 6.3 9,507.9 887,535 20,549.3
2009 6,368.80 6,067.6 23.8 5,931.8 1,049,899 23,613.1
2010 6,754.92 3,013.2 11.3 3,421.6 538,560 28,312.6
Key Information Contacts
Ministry of National Economy www.moneoman.gov.om
Capital Market Authority www.cma-oman.gov.om
Oman Chamber of Commerce and Industry www.cbo-oman.org
Financial Corporation www.fincorp.org
National Bank of Oman www.nbo.co.om
PAGE 101