Friday 13 / September / 2024
Muscat: The Omani stock market experienced a downturn during the week, extending its uncertain trajectory from the past two months, according to an industry expert.
This contrasts with the positive sentiment in other markets in the region that were buoyed by the potential for a Federal Reserve rate cut next month.
“While such prospects have uplifted GCC markets, Oman has grappled with declining oil prices over the past two weeks, coupled with a general decline in financial stocks, further weighing on market performance,” said Zakariya Al Julandani, Founder of Sumou.
“As the market navigates these challenges, its future direction remains uncertain amid the interplay of regional optimism and local pressures,” he further added.
Sectoral performance varied during the week. The financial sector was a notable laggard, declining by 1.05 percent, with stocks such as the National Bank of Oman (NBO), Oman Arab Bank, and Al Anwar Investment dropping by 1.82 percent, 4.70 percent, and 1.32 percent, respectively.
Conversely, the services sector remained largely stable, with a slight gain of 0.1 percent. Abraj Energy Services and OQ Gas Networks, two of the most traded stocks this week, saw minor declines of 0.33 percent and 0.70 percent. However, these were balanced by gains in stocks like Renaissance Services and Ooredoo, which rose by 3.64 percent and 1.41 percent, respectively.
The industrial sector exhibited resilience, recording a modest increase of 0.21 percent. This was driven by noteworthy performances in Oman Flour Mills, up 3.96 percent, Voltamp Energy, up 2.31 percent, and Al Maha Ceramics, which climbed by 4.67 percent.
Despite a mixed stock market performance, Oman’s broader economic indicators reflect strength. Oil exports rose slightly to 179.36 million barrels in July and the trade balance recorded a surplus exceeding OMR2.9 billion in May.
“These encouraging economic signals highlight Oman’s economic resilience, and could support a stronger stock market,” Zakariya Al Julandani said.
