What's the story with Bank Muscat?

I know this MSM stuff is getting a little boring for many of you. Sorry. So I'll just note how the market fell again ~3% today to less than 7900, as markets in the region and world wide continued to drop by large amounts.

But, on top of the overall doom and gloom on the markets in general, something very strange is happening to one of Oman's largest companies: Bank Muscat.
In the last 3 weeks the share price has plummeted almost 40%, now down to around 1.12 rial from a peak a few months ago over 2.13 rial. Ouch. The French bank Societe Generale were certainly right to bail out of their 15% shareholding at around 1.82. The Royal Court, as holders of ~40% of the shares after they picked up the French's share, must have lost (on paper) about US$1 billion in the past few months.

The price/earnings ratio is now about 10, assuming they can still maintain a ~100 million profit this year.

Why such a huge drop? Does anyone have a view? [Muscati??]

Is there some hidden liability to Leman Brothers or the other sub-prime meltdowns? Or is it just the implication for profits from the expected increase in loan defaults as the MSM market tanks and, along with it, the fall in the prices of Omani land and houses (also severely over-inflated)? Many people are having to sell property to cover margin calls on the falling market, or even sell out to limit the losses. And a big structural problem for Banks in Oman is the mis-match between the term of their liabilites (many short term deposits) and their assets (long term loans and other assets). Is Bank Muscat bleeding cash as the market falls?

Curious. I don't know if there's an official deposit insurance scheme for Omani banks, but there is NO WAY the Government would allow BM to fail.

MSM continues to fly like a frozen chicken

The MSM, as predicted, has continued to plummet, dropping over 2% and 3% respectively on the last 2 days. The index reached 8,800 yesterday, down almost 10% from the dead cat bounce 2 weeks ago.

What's most peculiar however is the almost complete absence of any reports or comments in the papers. I mean, the market is now down more than 25% from its peak earlier this year, and the drops this past week are huge, but the business sections of the papers are quiet. Spooky.

The hard hitting and fearless Times of Oman had a few lines stating the facts on Wednesday, but nothing on Thursday. Tribune: Nothing. Observer: Nothing.

And the Chairman of the Chamber of Commerce remains tight lipped, after having urged people not to sell at 9,400... Expect more blood, another bounce, and blaming it on pesky foreigners...