Wednesday 30 / October / 2024
Muscat: The Omani stock market demonstrated another week of volatile yet constrained performance, recording modest gains for its third consecutive week with an increase of 0.24 percent this week, according to an industry expert.
“Despite the start of Q2 earnings releases, market uncertainty continues to prevail. Oil price fluctuations throughout the week further contributed to market ambiguity, while inflation data from the US influenced the broader GCC markets,” said Joseph Dahrieh, Managing Principal at Tickmill.
“Investors adopted a cautiously optimistic stance, with hopes for a potential rate cut in September being priced in following the CPI releases,” he further added.
The financial sector emerged as the week's top performer, posting a 0.38 percent gain. The banking segment led this positive trend, with Sohar International Bank, Bank Muscat, and Bank Nizwa recording increases of 2.21 percent, 0.80 percent, and 0.96 percent, respectively. Al Madina Investment, National Finance, and Al Anwar Investment, reported mixed results contributing to the uncertain sentiment on the market.
In contrast, the services sector experienced a slight decline of 0.30 percent. Oman Telecom and Ooredoo saw minor setbacks of 0.10 percent and 0.34 percent, while Abraj Energy fell by 1.34 percent. However, the sector wasn't without its bright spots, as companies like Al Suwadi and Al Batinah Power reported profit increases in their earnings releases and saw their stock prices remain unchanged.
The industrial sector faced the most challenges, declining by 0.76 percent. Galfar Engineering and Contracting saw a 2.44 percent drop, while Jazeera Steel Products fell by 1.75 percent. Despite these setbacks, Gulf Mushroom Products and Oman Cables Industry provided some positivity with reports of increased profits.
“Looking at the broader economic picture, Oman's economy is showing encouraging signs of growth. The country's gross domestic product (GDP) reached $27.15 billion in the first quarter of 2024, driven primarily by the expansion of the non-oil sector,” said Joseph Dahrieh.
“This growth trajectory underscores the effectiveness of Oman's economic diversification efforts, aimed at reducing oil dependency and fostering a more resilient economic structure,” he added.
As the market moves into next week, continued earnings releases are expected to shape market sentiment and potentially influence the market’s direction in addition to potential oil price increases and the possibility of the Federal Reserve initiating an easing cycle, said Joseph Dahrieh.
