WEDNESDAY June 06, 2012

Shurooq Investment Research Daily Market Snap Shot Mohammed Raza Kamdar Financial Analyst [email protected]

Shurooq Securities Co. LLC PO BOX: 982; PC: 112 Ruwi, Oman Tel: 24726703/704/705 www.shurooqsecurities.com www.shurooqinvest.com

View Reports at: http://www.shurooqsecurities.com/reports.asp

Oman Market & Economy News


Bank Nizwa’s 1.5 billion shares will be listed for trading on the Muscat Securities Market on Sunday, June 10, 2012. (Source: MSM)




Petroleum Development Oman (PDO) is preparing to launch work on a new gas plant project that will help boost output of much-needed natural gas by over 1 million standard cubic metres per day. The green-field project will be built at Zauliyah in central Oman adjacent to PDO’s existing Zauliyah Oil Production Station. The new facility will process non-associated gas and produced fluids from the Zauliyah oil field. (Source: Oman Daily Observer)




Bank Muscat’s GDR which is listed at London Stock Exchange posted a price of USD 6.05 (OMR 0.582) as of June 06, 2012. Bank Muscat closed at OMR 0.561 on the Muscat Securities Market on June 06, 2012. (Source: LSE & MSM)

June 06 2012

Market Snap Shot Market Summary MSM30 index stood out it positive for today as select heavyweight stocks evinced market sentiments amongst regional investors. The General index gained 19 points after a sharp drop of 16 points in the intra-day of trading. MSM index month-to-date performance for June advanced to +0.51%, followed by year-to-date performance which stood at +1.56%. Both Financial and Services sectoral oral indices closed in green by 0.51% and 0.26% respectively due to gains in HSBC Bank Oman, Bank Muscat and Renaissance Services. Industrial sector couldn’t manage to close in positive despite gains in Galfar Engineering. Market breadth remained in support ort of the advancing equities as advance to decline ratio stood at 23:11; whereas 13 stocks ended flat out of 47 traded counters. Market activity remained retreated as total market volumes decreased by 16% to trade over 11.19 million shares and market turnover declined 3% at OMR 2.94 million. Market Capitalization from regular market stood at OMR 5.97 billion v/s. OMR 5.94 billion yesterday. Total Market Capitalization added another 1.60% to reach OMR 11.05 billion.

MSM + 0.33%

________________________________________________________ _______________________________________________________________________________________________________________________________ ___________________________________________________________________ Index Movement

Group Participation

Index

High

Low

Close

Prv. Close

Change

% Change

P/E

Nationality

Buy Turnover

Sell Turnover 81%

MSM30

5784

5768

5784

5765

19

0.33

10.40

OMANIS

79%

Financial Sector

6667

6633

6667

6633

34

0.51

9.14

GCC

7%

5%

Industry Sector

6935

6902

6904

6923

-18

-0.26

9.95

ARABS

3%

2%

Services Sector

2646

2637

2646

2639

7

0.26

9.48

OTHERS

Source: MSM Website

GCC Markets

Close

Prev. Close

% Chg

% YTD

P/E

Turnover

Mkt Cap

(USD mn)

(USD bn)

10%

11%

100.00%

100.00%

Commodities & Currencies

Close

Prev. Close

% Chg

Oman (MSM)

5,784

5,765

0.33

1.56

10.51

7.6

18

Oman Crude (USD/bbl) *

96.9

95.5

1.50

Saudi Arabia (TASI)

6,661

6,737

-1.12

3.79

11.73

1,578.6

350

WTI Crude (USD/bbl) *

85.3

85.0

0.35

UAE (Dubai FM)

1,456

1,450

0.42

7.58

10.37

19.5

48

Brent Crude (USD/bbl) *

100.8

100.6

0.11

UAE (Abu Dhabi SE)

2,435

2,433

0.07

1.31

8.23

16.7

74

Gold 100 OZ (USD/t oz.) *

1622

1634

-0.73

Kuwait (KSE)

6,085

6,130

-0.73

4.66

15.36

61.0

102

Copper (USD/lb) *

337

338

-0.40

Qatar (QSE)

8,343

8,322

0.24

-4.91

11.54

49.7

126

Euro / $1USD *

1.26

1.26

-0.14

Bahrain (BSE)

1,132

1,131

0.06

-1.01

7.88

0.4

20.2

$1USD / Yen *

79.40

79.19

0.27

Egypt (ESE)

4,485

4,503

-0.40

23.82

9.21

28.5

52.7

INR / $1USD *

55.16

55.14

0.04

Source: Zawya & Bloomberg

* Close as of 9:00 am OST

Global Markets – June 06, 2012 US Close Dow Jones 12415 Nasdaq 2845 S&P 500 1315 Source: Bloomberg

2

Prev. Close 12128 2778 1286

% Change 2.37 2.40 2.30

Europe FTSE FTSE-UK Dax--Germany CAC40 CAC40-Euronext

Close 5384 6094 3058

Prev. Close 5260 5969 2986

% Change 2.36 2.09 2.42

Asia Nikkei N225 HSI Hong Kong BSE - India

Close 8534 18521 16454

Prev. Close 8382 18259 16021

% Change 1.81 1.43 2.71

Shurooq Investment Research

Market Snap Shot

June 06 2012

Stock Performance Al Anwar Holding (+3.39% @ OMR 0.122) was the top gainer for today on heavy volumes to trade over 939K shares. Global Financial Investment (+1.15% @ OMR 0.088) remained most active in terms of market volumes to trade over 1.53 million shares and Nawras (-0.39% @ OMR 0.513) topped market turnover at OMR 519K. Index heavyweight gainers for today were: HSBC Bank Oman (+1.64% @ OMR 0.248), Galfar Engineering (+1.24% @ OMR 0.410), Bank Muscat (+1.08% @ OMR 0.561), Renaissance Services (+0.58% @ OMR 0.518), Raysut Cement (+0.38% @ OMR 1.333) and National Bank of Oman (+0.35% @ OMR 0.291). Asaffa Foods (-2.86% @ OMR 0.510) remained as the top decliner on low volumes to trade over 9K shares. Major decliners for today were: Bank Sohar (-1.28% @ OMR 0.154), Oman Cement (-0.59% @ OMR 0.676), Nawras (-0.39% @ OMR 0.513) and Omantel (-0.23% @ OMR 1.332).

GCC / MENA Market & Economy News




Abu Dhabi's Gulf Capital will enter Saudi Arabia's real estate market with a SAR1bn (US$267m) investment plan to tap growing demand for residential property in the kingdom. (Source: Arabian Business)




Qatar's RasGas, one of the world's biggest gas exporters, is currently running its 37m tonne per year liquefied natural gas (LNG) plant at full production capacity, according to a company official. (Source: Arabian Business)




Qatar Telecom (Qtel) said it plans to double its stake in mobile operator Asiacell to 60 percent, a deal worth close to USD1.5bn and one that will give the Doha-based telco more exposure to Iraq's fast growing telecoms industry. Qtel will initially increase its ownership in Asiacell to 53.9 percent, from 30 percent; the further increase in shareholding is subject to Iraqi government and regulatory authority approval. (Source: Zawya)




IFA Hotels and Resorts Company said that its board has proposed increasing the company's capital 40 percent by issuing nearly 181.6mn new shares at KWD0.23 (USD0.82) each. The share price will consist of a par value of KWD0.1 and an issue premium of KWD0.13. (Source: Zawya)




Kuwait and Middle East Financial Investment Company (KMEFIC) said it has signed a contract for the sale of the brokerage license of its unit Middle East Financial Brokerage Co.-Oman to Oman's Ahli Bank. Kmefic said that the license was sold at its book value of OMR347,800 (USD903,600) and that it didn't realize any profit or loss on the transaction. The bank has officially taken charge of the brokerage's operations. (Source: Zawya)




Gulf Finance House said that shareholders have approved using its reserves to write off KWD8.77mn (USD31.26mn) of accumulated losses. The shareholders have also decided that no dividends be distributed for 2011. (Source: Zawya)




Tatweer Petroleum Company plans to invest between USD3bn and USD4bn in the next four years mainly to drill wells. The Gulf state's oil production is expected to grow to more than 50,000 barrels a day by the end of 2012 compared with 40,000 barrels a day at present, Andrew Kershaw, the company's general manager for the development of the Bahrain Field, said. (Source: Zawya)

3

Shurooq Investment Research

June 06 2012

Market Snap Shot

Market Movers & Shakers – June 06, 2012 Top Movers

Price

Change %

Change

AL ANWAR HOLDING (AAIT )

0.122

3.39%

0.004

MSM Summary MSM30

5,783.910 2,944,702.984

Change%

FINANCIAL SERV. (FSCI )

0.080

2.56%

0.002

Turnover

ACWA POWER BARKA (APBS )

0.379

2.16%

0.008

Volume

11,191,878

GULF INT.CHEMI. (GICI )

0.162

1.89%

0.003

Trades

1,012

ONIC. HOLDING (ONIC )

0.269

1.89%

0.005

Sec Traded

47

HSBC BANK OMAN (HBMO )

0.248

1.64%

0.004

Up

23 11

AL KAMEL POWER (KPCS )

1.820

1.39%

0.025

Down

GALFAR ENGINEER. (GECS )

0.410

1.24%

0.005

Financial Sector

0.330%

TRANSGULF IND. (TGII )

0.085

1.19%

0.001

Index

6,666.910

Change%

0.510%

GULF INVESTMENT (GISI )

0.086

1.18%

0.001

Turnover

1,242,794.194

Sec Traded

15

Volume

6,636,685

Up

9

Top Shakers

Price

Change %

Change

Trades

543

Down

2

ASAFFA FOODS (SPFI )

0.510

-2.86%

-0.015

Industrial Sector

AL JAZEERA SER (AJSS )

0.281

-2.09%

-0.006

Index

6,904.480

Change%

-0.260%

VOLTAMP ENERGY (VOES )

0.320

-1.84%

-0.006

Turnover

765,697.690

Sec Traded

14

BANK SOHAR (BKSB )

0.154

-1.28%

-0.002

Volume

2,557,524

Up

4

OMAN CEMENT (OCOI )

0.676

-0.59%

-0.004

Trades

233

Down

6

SALALAH MILLS (SFMI )

0.870

-0.57%

-0.005

Services Sector

ALUMINIUM PROD. (NAPI )

0.225

-0.44%

-0.001

Index

2,645.690

Change%

0.260%

NAWRAS (NWRS )

0.513

-0.39%

-0.002

Turnover

867,407.467

Sec Traded

8

JAZEERA STEEL.P (ATMI )

0.277

-0.36%

-0.001

Volume

1,591,769

Up

5

DHOFAR INT. (DIDI )

0.423

-0.24%

-0.001

Trades

140

Down

3

Company

Price

Change %

Volume

Company

Price

Change%

GLOBAL FINC. IN. (GFIC )

0.088

1.15%

1,533,208

NAWRAS (NWRS )

0.513

-0.39%

519,466

GULF INVESTMENT (GISI )

0.086

1.18%

1,065,223

BANK MUSCAT (BKMB )

0.561

1.08%

278,923

OMAN FISHERIES (OFCI )

0.114

0.89%

1,047,000

HSBC BANK OMAN (HBMO )

0.248

1.64%

220,688

NAWRAS (NWRS )

0.513

-0.39%

1,011,901

GALFAR ENGINEER. (GECS )

0.410

1.24%

200,482

AL ANWAR HOLDING (AAIT )

0.122

3.39%

939,650

OMAN TELECOM (OTEL )

1.332

-0.23%

181,814

HSBC BANK OMAN (HBMO )

0.248

1.64%

889,110

OMINVEST (OMVS )

0.415

0.00%

160,471

BANK MUSCAT (BKMB )

0.561

1.08%

496,773

GLOBAL FINC. IN. (GFIC )

0.088

1.15%

134,478

GALFAR ENGINEER. (GECS )

0.410

1.24%

488,517

OMAN FISHERIES (OFCI )

0.114

0.89%

119,708

ONIC. HOLDING (ONIC )

0.269

1.89%

392,981

SALALAH MILLS (SFMI )

0.870

-0.57%

118,807

BANK SOHAR (BKSB )

0.154

-1.28%

388,769

OMAN CEMENT (OCOI )

0.676

-0.59%

117,234

Most Active By Volume

4

Most Active By Turnover Turnover

Shurooq Investment Research

June 06 2012

Market Snap Shot MSM Market Snap Shot Q1’2012 unless otherwise stated Share Price

Company

Financial Sector

Share Capital

Net Profit FY' 11

Net Profit Q1' 12

Net Profit Q1' 11

(mn)

(mn)

(mn)

(mn)

18.2

5.9

4.0

47

% Chg

BV

P/BV

EPS Q1'2012

P/E

CMP as of Dec 29, 2011

YTD Perf. (Div. Adj.) %

Cash Div. FY'11

Stock Div. FY'11

Div. Yield %

Mkt Cap

Recommendation

(mn)

Banking 1

Ahli Bank

0.199

95.4

0.126

1.58

2

Bank Dhofar

0.440

110.0

14.0

9.4

9.4

0.2

0.208

3

Bank Muscat

0.561

181.2

117.5

33.4

27.8

20

0.481

4

Bank Sohar

0.154

100.0

14.5

5.3

3.1

74

0.129

1.20

5

National Bank of Oman

0.291

110.8

34.2

9.6

7.7

24

0.246

1.18

0.009

8.4

6

HSBC Bank Oman

0.248

98.0

16.5

2.4

4.4

-45

0.168

1.47

0.002

25.1

0.265

19%

0.006

8.0

-10.64

190

Hold

2.11

0.009

12.9

0.547

-2.03

0.007

20%

1.17

0.018

7.6

0.766

-12.51

0.025

15%

1.59

484

Unrated

4.46

1016

0.005

7.2

0.158

2.53

0.008

Hold

5.2

154

Buy

0.320

-1.32

0.018

0.280

-6.30

0.011

2.5%

6.0

322

Add, Hold

1.3%

4.5

243

Unrated

0.020

5%

6.9

47

Reduce

20%

0.0

34

11.4

18

8.1

27

Add, Hold

7.7

33

Reduce

Leasing 1

Al Omaniya Financial

0.290

16.3

4.8

1.1

1.0

10

0.215

1.35

0.007

11.0

0.310

4.68

2

Muscat Finance

0.170

20.2

3.6

1.0

0.9

6

0.124

1.38

0.005

8.9

0.200

2.00

3

Oman Orix Leasing

0.110

16.8

2.6

0.8

0.6

33

0.123

0.89

0.004

6.1

0.110

11.36

0.013

4

Taageer Finance

0.124

21.7

3.2

1.0

0.6

49

0.125

0.99

0.004

7.0

0.155

10.45

0.010

5

United Finance

0.130

25.0

2.8

0.6

0.4

49

0.132

0.98

0.002

13.5

0.121

15.70

0.010

0.108

12.96

30%

Investment & Holding 1

Al Anwar Holding FY'11

0.122

12.0

0.4

0.7

-1.7

144

0.174

0.70

0.006

19.7

2

DIDIC

0.423

20.0

0.9

2.0

2.8

-28

0.367

1.15

0.010

10.4

0.435

-2.76

3

Ominvest

0.415

27.8

4.9

6.8

8.1

-17

0.177

2.34

0.024

4.3

0.418

11.60

0.010

4

ONIC Holding

0.269

17.3

-1.2

0.4

0.6

-27

0.279

0.97

0.002

27.7

0.170

61.18

0.005

5

Al Sharqiya Investment

0.104

8.0

0.4

0.5

0.3

81

0.174

0.60

0.006

4.0

0.096

8.33

6

Financial Services

0.080

6.5

-2.0

0.1

-0.7

117

0.082

0.98

0.002

11.4

0.055

45.45

5

7

Gulf Inv. Services

0.086

15.0

-0.3

1.0

0.0

4471

0.130

0.66

0.007

3.2

0.052

65.38

13

8

Global Financial Inv.

0.088

30.0

-0.3

0.8

0.1

544

0.112

0.79

0.003

8.5

0.056

57.14

26

Unrated

34

Reduce

15

10%

85

Unrated

2.4

115

Add, Hold

1.9

47

Reduce

8

Insurance 1

Dhofar Insurance

0.171

20.0

-2.2

1.5

1.3

10

0.152

1.13

0.007

5.9

0.198

-13.64

2

Oman United Insurance

0.160

10.0

1.1

1.7

0.4

380

0.208

0.77

0.017

2.3

0.115

45.65

0.008

4.7

16

Add, Hold

Industry Sector Cement 1

Oman Cement

0.676

33.1

12.8

5.1

4.2

24

0.434

1.56

0.016

10.9

0.432

63.43

0.030

4.4

224

Hold

2

Raysut Cement

1.333

20.0

14.9

6.8

5.0

37

0.496

2.69

0.034

9.7

0.760

81.97

0.050

3.8

267

Hold

Engineering 1

Al Hassan Engineering

0.209

7.5

2.5

0.3

0.6

-52

0.218

0.96

0.004

13.8

0.253

-11.46

0.015

7.2

16

Unrated

2

Galfar Engineering

0.410

33.0

5.3

1.7

1.4

25

0.266

1.54

0.005

19.6

0.337

25.22

0.012

2.9

135

Unrated

0.510

11.0

3.9

1.1

0.8

30

0.153

3.33

0.010

13.2

0.489

11.96

0.012

2.4

56

Hold

FMCG 1

Asaffa Foods

5

5%

Shurooq Investment Research

June 06 2012

Market Snap Shot

Share Capital

Net Profit FY' 11

Net Profit Q1' 12

Net Profit Q1' 11

% Chg

YTD Perf. (Div. Adj.) %

Cash Div. FY'11

Stock Div. FY'11

Company

2

Dhofar Cattlefeed

0.140

7.7

0.1

0.4

-0.3

235

0.526

0.27

0.005

7.6

0.135

7.41

3

Oman Flour Mills Q3'11

0.467

15.8

5.2

2.4

4.7

-48

0.289

1.62

0.015

22.8

0.478

-2.30

4

Salalah Mills

0.870

4.8

3.7

1.3

1.2

12

0.365

2.39

0.028

7.9

0.982

-7.33

1

Al Anwar Ceramic

0.370

20.4

5.7

1.6

1.5

5

0.141

2.63

0.008

11.8

0.325

24.15

0.015

2

Jazeera Steel Product

0.277

12.5

3.0

1.1

1.0

13

0.260

1.06

0.009

7.6

0.252

15.87

0.015

3

National Aluminum

0.225

3.4

1.4

0.03

0.3

-90

0.218

1.03

0.001

57.2

0.404

-39.36

0.020

8.9

8

Unrated

4

Oman Cable Industry

0.832

9.0

7.2

1.7

1.0

63

0.558

1.49

0.019

10.9

0.740

17.84

0.040

4.8

75

Add, Hold

5

Majan Glass

0.498

3.8

1.1

0.3

0.5

-31

0.325

1.53

0.009

13.8

0.645

-7.33

0.025

5.0

19

Hold

6

National Detergent

0.899

1.7

1.0

0.3

0.5

-38

0.745

1.21

0.017

13.5

0.899

4.45

0.040

4.4

15

Unrated

7

Oman Chlorine

0.494

6.2

2.7

0.7

0.5

33

0.259

1.91

0.012

10.4

0.440

17.95

0.025

5.1

31

Reduce

8

Voltamp Energy

0.320

6.1

1.4

0.2

0.5

-56

0.252

1.27

0.004

21.2

0.414

-10.14

0.020

6.3

19

Buy

0.056

8.5

-0.8

0.14

-0.04

424

0.096

0.58

0.002

8.4

0.044

27.27

BV

P/BV

EPS Q1'2012

CMP as of Dec 29, 2011

Share Price

P/E

Div. Yield %

Mkt Cap

0.005

3.6

11 74

Buy

0.040

4.6

42

Add, Hold

Recommendation

Manufacturing 5%

15%

10%

4.1

76

Hold

5.4

35

Add, Hold

Construction 1

Cons Mat. Industry

5

Services Sector Power & Utilities 1

ACWA Power Barka

0.379

16.0

9.4

1.0

1.4

-30

0.203

1.87

0.006

15.2

0.297

35.94

0.025

6.6

61

2

SMN Power

3.600

20.0

3.8

2.9

3.3

-12

1.678

2.15

0.147

6.1

3.663

2.21

0.144

4.0

72

Hold

3

Sohar Power

1.371

27.8

2.5

-1.4

0.5

-364

1.013

1.35

-0.052

-6.6

1.685

-18.64

38

Neutral

4

United Power

1.128

12.2

1.9

0.2

0.7

-67

1.616

0.70

0.018

15.9

1.002

12.57

14

Unrated

6.9

8.6

2.5

2.0

23

5.280

3.14

0.362

11.4

13.500

28.96

0.850

5.1

114

Buy

Reduce

Oil Marketing 1

Al Maha Petroleum

16.559

2

Oman Oil Marketing

1.785

6.5

8.1

1.9

1.9

0.5

0.529

3.37

0.029

15.3

1.710

8.01

0.062

3.5

115

Reduce

3

Shell Oman Marketing

2.510

10.0

12.6

3.4

4.0

-16

0.299

8.39

0.034

18.6

2.393

9.78

0.117

4.7

251

Reduce

Telecommunication 1

Nawras

0.513

65.1

47.5

9.8

12.1

-19

0.257

1.99

0.015

8.5

0.650

-15.23

0.038

7.4

334

Hold

2

Omantel

1.332

75.0

112.9

29.1

25.8

12.8

0.641

2.08

0.039

8.6

1.309

9.40

0.100

7.5

999

Hold Reduce

Port 1

Port Services

0.388

9.5

4.3

1.3

1.5

-13

0.350

1.11

0.014

6.8

0.428

2.34

0.050

12.9

37

2

Salalah Port Services

0.470

18.0

2.4

1.6

1.0

58

0.221

2.13

0.009

13.6

0.479

1.25

0.015

3.2

85

1

OIFC FY'11

0.218

12.0

2.1

3.5

2.8

26

0.156

1.40

0.029

7.4

0.185

17.84

Billing & Debt Collection 26

Hold

146

Unrated

Others 1

Renaissance Services

0.518

28.2

2.3

0.8

0.9

-16

0.695

0.75

0.003

46.7

0.545

-4.95

2

Al Jazeira Services

0.281

11.2

1.4

1.4

0.7

89

0.166

1.69

0.013

5.6

0.177

62.71

0.007

2.5

31

Hold

3

Muscat Gases

0.780

3.0

1.4

0.5

0.5

0.2

0.262

2.97

0.016

12.3

0.741

13.36

0.060

7.7

23

Reduce

4

Oman Holding FY'11

0.240

11.0

2.9

7.5

9.9

-25

0.471

0.51

0.068

3.5

0.251

-4.38

6

26

Shurooq Investment Research

Market Snap Shot

June 06 2012

.

Disclaimer This report is not directed to, or intended to or use by any person or entity who is a citizen of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which subject Shurooq Securities Co LLC to any registration or licensing requirements within such jurisdiction. This report is provided for information purpose only. This report is based on information generally available and is deemed reliable but no assurance is given as to its accuracy or completeness. Shurooq Securities Co LLC is not accountable for any decision based on the content of this report. The investor will not indemnify Shurooq Securities Co LLC and its officers, employees and staff against any loss or damage or other liabilities (including Cost), which may suffer as a result of reliance on such reports. Neither the information nor the opinions contained are to be construed as an offer to buy and sell securities mentioned above. This report is not to be relied upon in substitution for the exercise of independent judgment. Investor should judge the suitability of the securities to their need.

7

Shurooq Investment Research