Omani stock market extends losses in weekly trading

Muscat: The Omani stock market continued its decline this week, with the major index showing a negative performance of -1.67 percent, marking its fourth consecutive week of losses, according to an analyst.

“The main index closed near early November’s low and is at its lowest point for the year,” said George Pavel, General Manager at Capex.com Middle East.

Additionally, December's performance was notably negative, exceeding -3.7 percent. The market could still be exposed to additional declines and remains on a downtrend overall although it recorded significant volatility and uncertainty throughout the year. “The outlook remains bearish as the market continues to correct from the long bullish trend that began in early 2020. However, volumes and value traded increased compared to last week's tight trading conditions, suggesting a return to more typical market activity, which could help the market to stabilise,” he added.
In the broader Gulf Cooperation Council (GCC) region, the Omani stock market’s counterparts concluded the week with mixed performances, yet all ended in positive territory, George Pavel said.

“Markets in the region benefited from a more optimistic market sentiment overall as appetite for risk increases. Traders have positively responded to the Federal Reserve's dovish stance in its latest meeting regarding its views on monetary policy, leading to expectations of an early reduction in interest rates,” he added.

The year 2024 is anticipated to see a relaxation in monetary policy as inflation pressures subside. However, geopolitical tensions remain a significant source of risks for regional markets, compounded by falling oil prices this year.

Sectors’ performances on the Omani stock market varied this week. The financial sector recorded the largest drop, declining by -1.14 percent, led by Bank Dhofar and Bank Muscat, which dropped by -6.25 percent and -1.49 percent, respectively. These banks accounted for a significant portion of the sector's volume traded. The services sector also ended in the negative territory, decreasing by -0.69 percent. Notable declines were seen in Oman Telecom (-1.89 percent), Abraj Energy Services (-0.33 percent), and Oman Investment and Finance (-12.35 percent), the latter being one of the week's worst performers. Conversely, the industrial sector fared well, gaining 1.74 percent overall. Oman Cables Industry stood out with an impressive 17.18 percent increase, continuing its three-year bullish trend.