Tuesday 05 / November / 2024
Muscat: The Omani stock market ended this week with a 0.48 percent decline and saw volatile movements, according to an industry watcher.
“The market opened the week with a loss, mirroring other markets in the region that were affected by a global sell-off,” said Ahmed Negm, Head of Market Research MENA at XS.com. The latter was triggered by fears of a recession in the US following weaker-than-expected economic data releases. “However, sentiment improved later, helping markets recover some of their losses. The risk of potentially increased geopolitical tensions in the region weighed on sentiment and continued to exert downward pressure,” he further added.
At the same time, the oil market witnessed a rebound this week after four weeks of losses, which supported the Omani stock market to a certain extent. Higher crude prices could help the stock market recover more. While the stock market could remain under pressure, it could continue to react to changes in external factors and developments in global markets.
Sector performance was uniformly negative. The industrial sector was the worst performer and declined by 2.01 percent. Galfar Engineering & Contracting was one of the most traded stocks by volume, experiencing a 6.71 percent decline. Gulf International Chemicals also performed poorly, losing 9.59 percent while Voltamp Energy dropped by 1.99 percent.
The services sector also ended negatively, down by 0.80 percent. OQ Gas Networks was the most traded stock in this sector and closed the week down by 1.40 percent. Oman Telecom saw significant trading volume as well but reported a negative performance of 0.20 percent. The stock reacted to the release of the company’s results for the first half of the year, which showed a 47 percent decline in profits. SMN Power Holding lost 1.54 percent while Barka Water and Power decreased by 3.70 percent.
The financial sector was down by 0.58 percent, with many banks in the red. Both Sohar International Bank and Bank Nizwa saw declines, recording 0.74 percent and 0.95 percent losses respectively. Additionally, Global Financial Investment Holding was down by 3.90 percent.
“Despite this market volatility, the Central Bank of Oman (CBO) reported strong financial stability, backed by favourable economic indicators and improved debt sustainability,” said Ahmed Negm.
“This resilience in the banking sector is crucial for maintaining investor confidence and supporting economic growth, even as broader market challenges persist. The robust performance and sound risk management of Oman's financial system highlight its ability to navigate external economic pressures effectively,” he further added.
