(MENAFN- Muscat Daily) Second-quarter revenue and earnings of MSM30 index companies are anticipated to come under pressure due to a subdued performance across sectors according to Gulf Baader Capital Markets (GBCM).
The revenue of MSM30 index companies in the second quarter this year is projected to decline by 2.7 per cent year-on-year to RO879.3mn on weakness across all three sectors namely financial industry and services a report from the Oman's largest brokerage firm said.
Earnings of MSM30 firms are projected at RO163mn declining 8.4 per cent year-on-year due to dismal estimates from banks investment holding companies and certain industry and services sector majors.
GBCM's earnings preview expects all three sectors to post a decline in both revenue and earnings.
Banking sector revenue is estimated to decrease by 1.1 per cent while sector earnings are set to decline by 4.1 per cent year-on-year. GBCM estimates banking sector credit addition to be at RO700mn in the second quarter an increase of four per cent on a sequential basis. 'This is on the back of significant draw downs in syndicated loans witnessed during the quarter. However margins are expected to be thin' it said.
Bank Muscat National Bank of Oman Bank Sohar and Ahlibank are seen posting a decline in year-on-year net profit while BankDhofar and HSBC Bank Oman will post positive growth.
GBCM said investment-holding companies for the quarter are anticipated to report a modest decline in revenue to the extent of 4.3 per cent owing to range-bound performances of both local and regional equity markets. Investment-holding firms' earnings are estimated to deteriorate by 10.7 per cent.
The brokerage firm said the industrial sector on the other hand is estimated to report a seven per cent decline in revenue and 24.6 per cent drop in earnings amid a weak performance from construction and cement sector players. 'Sectoral earnings are expected to decline during the quarter owning to impact of summer and the month of Ramadan.'
In the industrial sector Oman Cement Raysut Cement Oman Cables and National Aluminium are estimated to post declines in net profit.
Services sector revenue is likely to decrease by 1.1 per cent while earnings are set to decline by 9.2 per cent year-on-year.
According to GBCM while Omantel is expected to report a 7.5 per cent decrease in net profit it anticipates Ooredoo to post 11.3 per cent growth in earnings. Renaissance Services Shell Oman Marketing Al Maha Petroleum and Sembcorp Salalah are also projected to report a decline in performance.
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