Award Winner 2010 Excellence in Brokerage Business Awarded for Research Promotion and Website Content

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1 Award Winner 2010 Excellence in Brokerage Business Awarded for Research Promotion and Website Content By Muscat Securities Global markets & Commodities Watch GLOBAL NEWS WATCH International Indices Index Value USA Dow Jones 13, S&P 500 1, NASDAQ 3, EUROPE FTSE 100 5, CAC 40 3, DAX 30 7, ASIA NIKKEI 10, Hang Seng 23, Strait Times 3, Regional Indices Index Value Muscat 5, Saudi Arabia 6, Dubai 1, Abu Dhabi 2, Kuwait (Price Index) 5, Bahrain 1, Qatar 8, Commodities Crude Oil ($/bbl) Value Crude Oil (WTI) Crude Oil (Brent) Metals Value Gold Future $/OZ 1, Silver Future $/OZ Aluminum $/T 2, Copper $/T 7, Nickel $/T 17, Forex Cross Currency Rates for Major currencies Currency $ Rs US $ Indian Rupees (Rs) Sterling ( ) Euro ( ) Japanese Yen ( ) U.S. House passes budget bill, averts most tax increases 2-Jan-13 The U.S. Congress approved a rare tax increase on Tuesday that will hit the nation's wealthiest households in a bipartisan budget deal that stops the world's largest economy from falling into a deep fiscal crisis and recession. The United States will no longer go over a fiscal cliff of tax hikes and spending cuts that had been due to come into force on Tuesday but other bruising budget battles lie ahead in the next two months, reuters reported. Income tax rates will now rise on families earning more than $450,000 per year and the amount of deductions they can take to lower their tax bill will be limited. Asian stocks climb as yen falls on U.S. budget Asian stocks climbed in the first session of 2013, extending last year s 13 percent global rally, copper gained while Japan s yen and the dollar weakened as U.S. Republican lawmakers gave up opposition to a budget compromise. The MSCI Asia Pacific excluding Japan Index climbed 1.6 percent, heading for its highest close since August Hong Kong s Hang Seng Index advanced 1.91 percent while Singapore s Straits Times Index added 1.17 percent after the economy expanded more than economists estimated last quarter. Oil rises from two-month high Oil rose from the highest close in two months in New York as the U.S. House passed a Senate- approved deal that will avert tax increases and spending cuts that threatened growth in the world s biggest economy. Crude for February delivery rose as much as 64 cents to $92.58 a barrel on the New York Mercantile Exchange. It rose $1.02 to $91.82 on December 31, the highest settlement since October 18. West Texas prices dropped 7.1 percent last year and 0.4 percent in the fourth quarter. Yen, dollar drop against most of their major counterparts The yen and dollar weakened against most of their major counterparts as U.S. lawmakers passed legislation to avert the fiscal cliff of automatic spending cuts and tax increases. The yen fell past 87 per dollar for the first time in 2 1/2 years after Japan s Prime Minister Shinzo Abe reiterated his intention to weaken the nation s currency. The yen dropped to as low as per dollar, a level unseen since 29 July The yen slid 1 percent to per euro after earlier touching , the weakest since July 8, The dollar lost 0.5 percent to $ against the euro. GCC Returns (YTD) Currency Rates against OMR Currency Value OMR/ $ OMR/ OMR/ OMR/ OMR/ Rs Debt market Interest Rates LIBOR EURIBOR Sources: Bloomberg, Reuters, Zawya, MSM 1M 3M 6M 1Y Data as on 9.00 AM, 2-Jan Muscat Saudi Arabia Dubai Abu Dhabi Kuwait (Price Index) Bahrain Qatar -4.79

2 Round up REGIONAL & OMAN NEWS WATCH MSM Indices Movement 1-Jan-13 Index Last Prev. MSM 30 MSM30 5, , Financial BKINV 6, , Services SINSI 2, , Industry INDSI 7, , MSM Sectorial Snapshot Index MSM 30 Financial Industry Services Mcap (RO Dividend P/E P/BV '000) Yield 5,109, ,732, , ,713, REGIONAL GCC exports to Japan up 13.7 y-o-y in first 10 months of FY2012 Exports by Gulf hydrocarbon producers to Japan swelled by nearly 13.7 percent y-o-y in the first 10 months of 2012 as crude prices remained at historically high levels and Japan kept its heavy reliance on crude from the region. Exports by the six-nation Gulf Cooperation Council (GCC) to Japan grew to nearly $131.3 billion in the first 10 months of 2012 from around $115.8 billion in the first 10 months of Saudi Arabia, the world s top oil supplier, emerged as the largest Gulf exporter to Japan with a value of around $45.5 billion in the first 10 months of 2012 compared with nearly $41.2 billion in the same period of Saudi Aramco to drill 7 gas exploration wells in Tabuk province State oil giant Saudi Arabian Oil Company (Aramco), plans to drill seven gas exploration wells in deep and shallow water in the Red Sea, off the coast of the northwestern city of Tabuk, the firm's chief executive officer said. Aramco will also start gas production at its Midyan field in Tabuk in The field has significant reserves, and the gas will be used for power generation. Aramco will drill more wells to appraise the field, which is forecast to produce 75 million cubic feet a day of gas and 4,500 barrels a day of condensate for a 20-year period. Net Position Nationality Buy Sell Net Buy / Vol () Val () Vol () Val () Sell OMANIS GCC ARABS OTHERS Dubai government plans higher public spending in 2013 to support economy MSM Movers Transgulf Ind. Global Finc. In. Construction M. Oman Invst& Fin. Al Anwar Holding MSM Shakers United Finance Dhofar Cattle Bank Sohar Hsbc Bank Oman Al Sharqia Inv. MSM Volume Leaders Gulf Investment Global Finc. In. Al Anwar Holding Oman Invst& Fin. Bank Sohar MSM Value Leaders Oman Invst& Fin. Gulf Investment Al Anwar Holding Bank Muscat Global Finc. In. Volume ,118, ,703, , ,181, ,429, Volume , , ,224, , , Volume ,587, ,703, ,429, ,181, ,224, Turnover , , , , , Dubai's government said that it plans to increase public spending in 2013 to support the economy, but still expects to narrow its budget deficit as the debt-laden emirate continues to focus on a prudent fiscal policy. Dubai will run a budget deficit of Dh1.5 billion ($409 million) in 2013, an 18 drop from the fiscal year 2012 forecast. Public revenues in 2013 are seen at AED32.62 billion, while public expenditure is estimated at AED34.12 billion. About 26 of government spending has been allocated to social development in the areas of healthcare, education, housing and community development, while 23 has been earmarked for the security, justice and safety sector. OMAN Sultanate s budget for 2013 approved Darwish bin Ismaeel al Balushi, Minister Responsible for Financial Affairs, said that His Majesty Sultan Qaboos has approved the State General Budget and the Royal Decree No 1/2013 approving the State Budget for 2013 has been issued. As per the As per the state budget, the expected revenues at the State Budget for the fiscal year 2013 are estimated at RO 11.2 billion whereas the size of expenditure is estimated at RO12.9 billion. The oil price at the State Budget for 2013 has been calculated at $85 per barrel with the production level at 930,000 barrel per day. The government aims to enhance the economic growth by constant increase in the governmental spending, especially the development expenditure and availing the financial allocations for employment at the different administrative units of the state, he added. MSM Returns (YTD) Breadth Advances 25 Declines 13 Total Securities Traded Activity Statistics Traded volume 34,879,539 Turnover R.O 6,178, MSM Financial Industry Services Sources:Bloomberg,Reuters,Zawya,MSM

3 Al Maha Financial Services LLC Technical Analysis MSM General Index Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) 5, ,790 5,666 5,709 5, MSM General Index closed first trading session of the year in green at , with a nominal gain of 0.05 and with million shares traded. witnessed relatively higher volumes on the previous session while foreign investors were the net buyers. Though market maintains a positive bias, the moves of key indicators on intraday charts and inverted hammer candle stick formation on the previous session suggest limited probability for continuation of a sharp run up for the index. Omantel (OTEL) alert alert Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) Omantel ended Tuesday's session at 1.470, slipping down by 0.07 with 74 thousand shares changing hands. OTEL maintains bullish outlook with its positive structure on charts and the scrip continues to stay fairly bought. The stock is likely to show further up side after testing the immediate resistance at level. Source:Tickerchart Al Maha Financial Services LLC

4 Al Maha Financial Services LLC ` Technical Analysis Al Anwar Ceramic Tiles Company (AACT) Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) Al Anwar Ceramic Tiles ended the previous trading session at 0.413, loosing 0.24 with 0.206million thousand shares traded. AACT looks to be ending its correction with the up move shown in the previous couple of sessions. However, the trajectories of trend and directional indicators suggest a range bound move at the counter for the near term. The stock is likely to undergo resistance at 440 levels. United Finance (UFCI) Resistance Support EMA 10 EMA 25 RSI(14) ADX(14) United Finance closed on Tuesday at 0.150, with a loss of 1.96 and with million shares traded on the counter. UFCI demonstrates a correction mode after its recent smart run up and the scrip has moved back from the over heated zone with its recent down turn. The broad outlook remains positive for the stock as suggested by key indicators. Immediate support is likely for the stock at Source:Tickerchart Al Maha Financial Services LLC

5 MSM Corporate Score Sheet Company Price 52-Weeks (Closing) Revenue Cap Result as on (Values in RO '000) 1-Jan-13 High Low Capital Latest Previous Y-o-Y Y-o-Y Latest Previous Financial FY 2011 National Bank of Oman , , Sep-12 49,968 44, ,465 27, , Bank Muscat ,851 1,170, Sep , , ,227 87, ,030, Ahli Bank , , Sep-12 23,322 18, ,002 13, , Bank Sohar , , Sep-12 30,443 25, ,722 10, , Bank Dhofar , , Sep-12 48,022 45, ,730 31, , HSBC Bank Oman , , Sep-12 26,689 NM 10,565 NM , Ominvest , , Sep-12 45,269 38, ,196 6, , ONIC Holding ,342 50, Sep-12 9,044 2, ,247 (537) , Al Anwar Holding* ,000 16, Sep-12 1,953 6, , Gulf Inv. Services ,023 14, Sep-12 1, (510) , Transgulf Ind. Inv. Holding* ,688 5, Sep-12 (6) (12) 51 (301) (537) 44 NM 7, NM Global Investment ,000 28, Sep ,400 (609) , Aggregate ,411, Industry Oman Cement , , Sep-12 41,762 36, ,859 9, , Raysut Cement , , Sep-12 70,353 62, ,819 11, , Al Anwar Ceramic ,443 84, Sep-12 16,845 14, ,917 4, , Oman Cables , , Sep , , ,262 4, , Jazeera Steel Product ,490 38, Sep-12 77,611 68, ,288 2, , Galfar Engineering , , Sep , , ,966 3, , Gulf Int. Chemicals ,100 3, Sep-12 2,430 2, , National Aluminium ,357 6, Sep-12 13,011 16, , , Oman Fisheries* ,500 12, Sep-12 9,373 10, (57) NM 15, NM Oman Refreshment , , Sep-12 49,871 41, ,949 4, , Aggregate Services Shell Oman ing , , Sep , , ,582 10, , Al Jazeira Services ,172 42, Sep-12 9,305 8, , , Renaissance Services , , Sep , , ,600 4, , Omantel ,000 1,102, Sep , , ,007 82, , Nawras , , Sep , , ,718 35, , Oman Inv. & Finance* ,000 29, Sep-12 5,331 5, , , Al Maha Petroleum , , Sep , , ,490 6, , Oman Oil ing , , Sep , , ,743 6, , Aggregate 203,475 2,116, , MSM-30 1,308,372 5,589, , ,421 3,890, Others ACWA Power Barka ,000 68, Sep-12 31,895 31, ,289 6, , Oman Chlorine ,177 33, Sep-12 5,820 5, ,420 1, , Construction Material ,500 4, Sep-12 2,668 2, (217) , NM Salalah Mills ,816 49, Sep-12 37,884 29, ,451 2, , Oman Flour Mills** ,750 75, Sep-12 15,635 14, , , Al Hassan Engineering ,521 11, Sep-12 35,943 44, (3,638) 1, NM 11, NM United Finance ,001 37, Sep-12 3,935 4, ,225 1, , Oman United Insurance ,000 19, Sep-12 12,783 15, ,231 (57) NM , A Saffa Foods ,025 61, Sep-12 15,944 18, ,424 2, , Dhofar Cattlefeed ,700 18, Sep-12 13,432 12, , Voltamp Energy ,050 22, Sep-12 12,725 11, , , DIDIC ,000 75, Sep-12 1,213 (62) ,060 (1,570) , Source:MSM Net Profit EPS(Ann.) * FY March.** FY June, Financials for period ended 30 September 2012 Note : PBV is based on the latest available Financial Statements. Valuations are based on adjusted earnings. Net Worth BVPS PE (Ann.) PBV Dividend Yield (FY'11)

6 PO Box 1065 PC 117, Al Wadi Al Kabir, Sultanate of Oman Contacts Telephone Customer service & Operations: Zakia Al Ghammari Muna Al Hashmi Halima Al Mahrooqi Pravin Sivan Research: Suresh Kumar Radhika Gadhia Khushboo Badlani Portfolio Management: S.V. Uppiliappan Brokerage: Abdullah Al Hinai Mahmoud Al Hamsaidi Nasser Al Banna Disclaimer The information contained in this report has been obtained from the sources believed to be reliable and in good faith, but which may not be verified independently. While utmost care has been taken in preparing the above report, Al Maha Financial Services LLC makes no guarantee, representation or warranty, whether expressed or implied, and accepts no responsibility or liability to its accuracy and completeness of the data, being provided. Opinion expressed is our current opinion as of the date appearing on this material only. We do not undertake to advise you as to any change of our views expressed in this document. The investments discussed in this report may not be suitable for all the investors. Investors must take their own decision based on their specific investment objectives and financial position, and using such independent advisors, as they believe necessary. Income from investments may fluctuate. The price or value of the investments, to which this report relates, either directly or indirectly, may fall against the interest of investors. This document is strictly for the use of recipients only. None of the material provided herein may be reproduced, rewritten, rehashed, published, resold or distributed in any manner whatsoever without the prior and explicit written permission of