CMA ponders Brexit impact on Oman firms

6/28/2016 2:15:12 AM

(MENAFN- Muscat Daily) Muscat-

In light of the UK vote to exit the European Union and its impact on global financial markets, commodity prices and exchange rates, Oman''s Capital Market Authority (CMA) has urged all listed companies to disclose potential exposures which might impact share prices.

The market watchdog issued a circular on Sunday urging ''all public joint stock companies listed on the MSM to immediately disclose any current or potential exposure on the financial position of the company which would have impact on their price in the market, pursuant to the disclosure terms and conditions issued by CMA under the capital market law.''

Reacting to Friday''s sharp fall in global markets following the UK vote, the GCC stock markets fell sharply on Sunday.

Kuwait-based Global Investment House expects the Brexit impact on GCC markets to be ''neutral to negative''. In a research note, the investment firm on Monday said GCC exports to the UK and EU may reduce if an economic slowdown materialises.

''Given the GCC''s exports to the UK and the EU remain concentrated to oil and energy related products, any slowdown in the respective economies on account of the Brexit, may lead to further pressure on the price of oil,'' it said.

Dubai Financial Market lost 3.3 per cent on Sunday, the largest decline in the region. However, the Muscat bourse was the least impacted among its GCC peers. Most regional markets closed in the green on Monday with the MSM30 index closing with a slight gain of 0.03 per cent.

''The Dubai Financial Market''s large decline compared to GCC peers could apparently be due to a larger foreign ownership proportion compared to other GCC countries and because it is more vulnerable to the British economy than its regional counterparts owning to foreign tourists and properties sector,'' Global Investment House said.

A Gulf Baader Capital Market (GBCM) note said despite no direct impact seen in the Oman and GCC markets, post Brexit, increased uncertainties and correction in oil prices could impact market sentiment.

Kamco Investment Co said GCC equities could witness near-term selling pressure in ''risk-off'' trade. ''We expect Brexit-related news and its impact on oil to be key focus areas for the GCC markets in the near term,'' the Kuwait-based investment manager said.

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