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Muscat: Oman's share index closes marginally higher. The MSM30 index closed at 4,101.59 points, up 0.13 per cent. The Sharia index closed up 0.04 per

Muscat: Oman's share index closes marginally higher. The MSM30 index closed at 4,101.59 points, up 0.13 per cent. The Sharia index closed up 0.04 per cent at 548.63 points. Al Madina Investment, up 8.00 per cent, was the top gainer while Gulf Investment Service, down 3.13 per cent was the top loser. Oman Fisheries was the most active in terms of number of shares traded while Omantel was the most active in terms of turnover. Financial Index closed at 6,478.730 points, up 0.23 per cent. Al Madina Investment, Al Omaniya Financial, Bank Dhofar and Bank Muscat were up by 8.00 per cent, 1.77 per cent, 1.77 per cent and 0.45 per cent respectively. Gulf Investment, Oman & Emirates, Oman United Insurance and Al Anwar Holding were down by 3.13 per cent, 1.72 per cent, 1.23 per cent and 1.16 per cent respectively. Industrial Index closed at 4,358.94 points, down 0.19 per cent. Oman Cement was up by 0.38 per cent. Galfar Engineering, Oman Fisheries and Raysut Cement were down by 1.59 per cent, 1.22 per cent and 0.41 per cent respectively. Services index closed lower by 0.07 per cent at 1,900.68 points. Renaissance Service was up by 2.92 per cent. Phoenix Power, OIFC, Al Batinah, and Al Suwadi Power were down by 3.33 per cent, 1.72 per cent, 1.67 per cent and 1.64 per cent respectively. United Securities (2020) Oman's share index closes marginally higher. Available at: https://timesofoman.com/article/1959369/business/markets/omans-share-index-closes-lower-marginally (Accessed: 02 August, 2020).

Read the above report and write an assignment based on the following tasks: (A) Briefly discuss the major issue in investment today based on the above report. (10 marks) (B) Critically discuss three categories of financial assets needs and decision making process for financial investment from the report. (15 marks) (C) Mr. Abdul Aziz is considering on investment in Oman Cement which it was up by 0.38 per cent. Oman Cement has an expected dividend per share, 5 OMR. The current price of the share is 55 OMR, and expected price after 1 year is 65 OMR. The risk adjusted required rate is 10%. You are required to: a) Discuss financial assets of industrial index mentioned in the report. (10 marks) b) Calculate holding period of return of Oman Cement. (3 marks) c) Calculate Value of stock of Oman Cement. (2 marks) d) Critically advise Mr. Abdul Aziz whether invest in the Oman Cement or not, why? (10 marks)

(D) Ms. Jane is holding 1,000 shares of Renaissance Service which was up by 2.92 per cent, with 80 OMR per share. The price of OMAN TELL share now is 85 OMR per share. The share has 12% interest rate and initial margin is 80%. You are required to: a) Discuss investment valuation techniques helping fund managers to evaluate investment decision. (5 marks) b) Margin return increased or decreased. (2 marks) c) New margin return, if the price is rising to 90 OMR per share. (3 marks) d) With new margin, critically advise Ms. Jane whether to hold the shares of Renaissance Service or sell it. (10 marks)

(20 marks) (E) An investor is considering on investing in financial index which was closed at 6,478.730 points, up 0.23 per cent. Bank Muscat was up by 0.45 per cent with the trade value in the stock market of 65 OMR. The share is now trading in the spot market put option with a strike price of 80 OMR and premium received of 20 OMR. As a fund manager, you are required to: a) Discuss financial investment and derivatives. (5 marks) b) Calculate if the share price falls to 62 OMR on expiry date, what would be the profit/loss for the holder and writer of the option? (2 marks) c) Calculate the maximum profit/loss for the writer of the options. (3 marks) d) Critically analyse investment decision of an investor for the Bank Muscat share. (10 marks)

(20 marks) (F) Provide a conclusion with the logical flow of information given in the assignment report (10 marks)

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