Monday 01 / July / 2024
Muscat: The Omani stock market demonstrated modest resilience during the week, closing with a slight gain of 0.18 percent following two consecutive weeks of decline, according to an analyst.
“This minor uptick comes while the monthly performance in June ended negative, which interrupted a three-month streak of gains,” said Daniel Takieddine, BDSwiss CEO Mena.
“The market has found support at levels established in late March, with the recent appreciation in oil prices bolstering market sentiment. However, ongoing geopolitical tensions and concerns surrounding US inflation data continue to exert downward pressure on the market, he further added.
Sector performances were mixed, with the industrial sector emerging as the weakest performer, registering a decline of 1.02 percent. Notable contributors to this downturn included Galfar Engineering and Contracting, which fell by 2.92 percent, and Oman Cables Industries, which saw a slight decrease of 0.14 percent. Both stocks significantly influenced trading volumes and sector performance throughout the week.
The financial sector extended its negative trend, with the banking industry continuing to weigh heavily on overall sector performance. Key players such as Bank Muscat, Sohar International Bank, and National Bank of Oman experienced declines of 0.40 percent, 2.19 percent, and 0.78 percent, respectively. Al Anwar Investment saw a substantial drop of 7.95 percent.
In contrast, the services sector provided a bright spot, posting a gain of 0.59 percent. This positive performance was largely driven by Sembcorp Salalah, which surged by 8.25 percent, and Ooredoo, which recorded a modest increase of 0.68 percent.
“At the same time, Oman's gross domestic product (GDP) growth in the first quarter of 2024 showed promising signs, primarily fueled by non-petroleum sectors,” said Daniel Takieddine. “This development indicates progress in the nation's economic diversification efforts, potentially enhancing investor confidence and improving resilience against oil market fluctuations.”
“Over the longer term, the market could find support as Opec gradually phases out oil production cuts. Sentiment could also improve if crude prices continue to recover over the next few months,” he further added.
