MUSCAT: Major Omani firms that constitute MSM 30 Index are expected to post a growth in both net earnings and revenue for the first nine months of 2016, over the same period of 2015. The net earnings of MSM 30 companies are expected to achieve a year-on-year growth of 6.4 per cent at OMR544.18 million during January-September 2016 period, said a research note released by the Gulf Baader Capital Markets on Wednesday. “The growth in profitability is driven by strong performance of few companies in the industrial and service sectors,” added the research note. Gulf Baader also said that the combined anticipated revenue of MSM 30 firms for the nine-month period could be at OMR3.06 billion, registering a year-on-year growth of 5.9 per cent.
“During the first half of 2016, most of the listed companies accounted for 12 per cent corporate tax rate. With the Royal Decree pending with respect to the change in taxation, we have also assumed 12 per cent tax rate in our third quarter 2016 estimate,” it added. The revenue of MSM 30 companies, excluding investment holding firms, for January-September period is estimated to grow by 3.2 per cent at OMR2.88 billion, while earnings of index companies are projected to increase by 5.6 per cent year-on-year to OMR516.46 million.
