Thursday 17 / April / 2025
Muscat: The Omani stock market closed the week with losses across all sectors with the MSX 30 index hitting its lowest level this year after ten months of price uncertainty, according to an analyst.
“The main index declined along with other global stock markets with many in the Gulf Cooperation Council (GCC) seeing significant volatility and uncertainty,” George Khoury, Global Head of Education and Research at CFI, said.
The market was affected by the geopolitical tensions in the region as well as a general risk-off sentiment, he said. “The concerns about geopolitical tensions could continue to affect performances over the short to medium term. Diplomatic efforts could help reduce the risks of a spillover and could help limit losses in the market,” George Khoury said.
The volatility in oil prices was an additional factor that influenced the market negatively. Prices have been swinging significantly this week after retreating from the previous week’s high. Energy markets in general could continue to react to the developments in the region as concerns about supplies ebb and flow.
All sectors ended in the red, extending the decline recorded during the previous week. The financial sector saw the largest losses with a 2.64 percent fall. It was followed by the industry sector, which remained on a bearish trend overall, with a 1.68 percent slide. The services sector lost 1.62 percent, falling for a second week but at a slower pace.
The OQ Gas Networks stock made its trading debut and saw its price rise by 7.14 percent. The company’s initial public offering (IPO) helped raise OMR288.2 million ($749 million). The IPO was Oman's largest and drove trading volumes to record levels. OQGN represented more than 65 percent of the volume traded this week on the stock market, followed by Bank Muscat. OQ also dominated the market in terms of value traded with Bank Muscat reaching almost 90% of the total.
Bank Muscat, however, declined 5.22 percent along with other banks. Bank Dhofar fell notably by 8.57 percent while Sohar International Bank, National Bank Oman, and Nizwa Bank recorded smaller losses. Other sectors saw mixed individual stock performances. Oman Telecom rose 0.99 percent while Ooredoo fell 7.04 percent. Abraj rose 1.01 percent.
Overall, investors could remain cautious ahead of the Federal Reserve meeting in the coming days, George Khoury said. “While it is expected to leave interest rates unchanged, the restrictive monetary policy could leave stock markets under pressure. Interest rates could remain higher for longer as the Federal Reserve works to reduce inflation levels,” he further added.
