Wednesday 30 / October / 2024
Muscat: The Omani stock market experienced a negative performance this past week, marking a return to a bearish trend after trading sideways for a couple of weeks, according to an analyst.
“The main index fell by 0.97 percent, extending the market’s decline that followed its strong rebound at the beginning of the year. The market could remain exposed to additional price corrections as the main index failed to return toward its previous peak,” said Ahmed Negm, Head of Market Research MENA at XS.com.
Declining trading volumes could also exacerbate the market’s direction. While trading volumes remain relatively high despite a retreat, the value traded was shifting toward the lower end of the spectrum observed during the past few months, he further added.
“This Omani stock market followed others across the Gulf Cooperation Council (GCC) region as geopolitical tensions and fluctuations in oil prices have contributed to a climate of uncertainty and volatility,” said Ahmed Negm.
These factors have dampened market sentiment, leading to mixed performances. Investors in the region reacted to the Federal Reserve’s meeting this week as well as it maintained its interest rates unchanged and indicated that they could remain elevated for a longer period of time,” he added.
Sector-wise, the financial sector declined by 1.20 percent and weighed significantly on the market’s performance. Several banks recorded negative performances this week. Bank Dhofar retreated by 6 percent while the National Bank of Oman fell by 4 percent, continuing its downward trajectory from its peak in October. Similarly, Ominvest dropped by 5.38 percent. Several banks also announced dividend payouts this week.
Conversely, the services sector showcased a strong performance, gaining 1.9 percent over the week and recorded strong gains among some stocks such as Sembcorp Salalah, which rose by 9 percent, Sharqiyah Desalination, which was up by 4.62 percent, and Oman National Engineering & Investment which increased by 6.25 percent. Oman Telecom climbed slightly by 0.19 percent, along with Ooredoo which gained 2 percent. Abraj Energy and Renaissance Services fell, however.
The industry index, albeit with a modest gain of 0.19 percent, saw positive contributions from stocks like Oman Cables Industry, which increased by 3.07 percent, and Al Jazeera Steel Products, by 2.89 percent.
