Thursday 27 / June / 2024
Muscat: The Omani stock market recorded a negative performance this week and saw significant price corrections after a rebound during the first part of this month, according to an analyst.
The main index was unable to move beyond the top of its trading range for the last three months. “The market’s reversal erased most of the gains from the previous two weeks while the main index continued see-sawing for more than a month,” said Hani Abuagla, Senior Market Analyst at XTB.
Overall, the market has been directionless since the beginning of the year. “However, the outlook for the Omani stock market could remain bearish and could be influenced by the recent selloff in other GCC stock markets and the ongoing geopolitical tensions in the region. The escalating situation could push investors toward safer assets as risk aversion increases,” he added.
The financial sector led the losses with a 2.79 percent decline after a good performance in the past three weeks. The services sector retreated as well, losing 2.47 percent after three consecutive weeks in the black. The industrial sector, while experiencing more limited losses, has extended its multi-week downtrend. Among the market’s heavyweights in the market, Bank Muscat lost 6.62 percent, Sohar International Bank retreated 3.74 percent, Oman Telecom slid 0.98 percent and Ooredoo fell 8.97 percent.
Investors' sentiment was also affected by the mixed earnings reports released this week with some companies recording decreased profits for the third quarter of this year. Bank Muscat’s stock performance was affected by the release of its earnings results which were below expectations, despite a 7.1 percent year-on-year increase in its net profit for the first nine months of 2023.
Hani Abuagla further said that at the same time, Omani stocks could continue to see an impact from energy markets. Oil prices have been very volatile but continued to rise overall. “While the higher price levels could have a positive impact on Oman’s economy and on the performance of the stock market, the volatility could fuel more uncertainty,” he added.
Geopolitical tensions and concerns about potential supply disruptions could continue to support energy prices, said Hani Abuagla. “However, worries about the global economy, monetary policy and the impact of the efforts led by the US to secure oil supplies could limit the extent of the price increases,” he further added.
