Tuesday 14 / May / 2024
Muscat: The Omani stock market experienced a significant decline this week from the 4,800 level, with the main index falling by 2.47 percent, according to an analyst.
“This week's price movement erased a considerable portion of the gains for the month, even though the monthly performance ultimately ended positively,” said George Khoury, Global Head of Education and Research at CFI. “The market correction may continue, but the gains in oil prices seen at the end of this week could support the overall sentiment and performance of the market,” he added.
Similarly, the other GCC stock markets were mostly lower this week as sentiment was more cautious before the release of the US PCE inflation data and the speech of the Federal Reserve president. Additionally, general dividend distributions and board members' meetings also impacted the overall sentiment negatively. In contrast, the gains in oil prices may support a rebound next week.
“In terms of sector performance, all three main sectors were down, led by a significant drop in the Industrial sector,” said George Khoury. Specifically, the latter recorded a loss of 4.92 percent. Oman Cement was the worst-performing stock in the market this week, down by 26.73 percent, followed by Jazeera Steel Products, down by 8.89 percent, and Al Anwar Ceramic, down by 8.59 percent, all of which fell after their dividend distribution.”
The Financial sector also experienced a decline, down by 0.96 percent. Bank Muscat, one of the most traded stocks based on value, fell by 5.42 percent, and Bank Nizwa was down by 3.03 percent, both dropping after their dividend distributions. Oman United Insurance followed with a decrease of 4.90 percent.
The Services sector saw a slight decrease, down by 0.04 percent. Within this sector, the Telecommunications sector was down, led by Oman Telecom, which fell by 0.92 percent, and Ooredoo, which dropped by 1.93 percent. OQ Gas Networks also decreased by 1.38 percent. In contrast, utilities like Barka Water and Power as well as Dhofar Generating surged by more than 55 percent.
“However, the market could benefit from the efforts to bolster the local economy,” said George Khoury. “In this regard, Oman has launched a $5.2 billion fund which could help boost private sector activity, attract global partnerships, increase market confidence, draw foreign investment, enhance liquidity, and encourage the growth of listed companies,” he further added.
