Friday 08 / November / 2024
Muscat: The Omani stock market experienced a slight decline this week, losing 0.32 percent after two consecutive weeks of gains, according to an analyst.
“The market’s performance was influenced by the general downward trend in oil prices observed over the past few weeks, even though a rebound occurred in the last days of trading,” said George Khoury, Global Head of Education and Research at CFI.
“Like other economies in the region, the Omani economy relies heavily on oil income. Additionally, the cautious mood surrounding the markets ahead of next week’s anticipated Federal Reserve rate cut and this week’s inflation data releases also impacted market performance,” he further added.
The market may be poised for significant movements in the next two months, as the anticipated initial public offering (IPO) of OQ Exploration and Production could be a major event for the Omani stock market, the analyst said. “This offering, potentially raising up to $2 billion, marks one of Oman’s largest IPO to date and aligns with the country’s privatisation efforts,” said George Khoury.
The listing, expected to take place on the Muscat Stock Exchange, could significantly boost market liquidity and attract both local and international investors, potentially catalysing further growth in Oman’s capital markets and providing the much-needed catalyst for market direction.
This week, sector performance was predominantly negative, with the services sector leading the decline, dropping by 2.09 percent. Key contributors to this downturn included OQ Gas Networks, which fell by 2.03 percent, Abraj Energy Services, down by 0.67 percent, and Renaissance Services, which saw a significant decrease of 4.38 percent. The industrial sector also faced challenges, slipping by 0.61 percent. Within this sector, Jazeera Steel Products declined by 1.07 percent, and Galfar Engineering and Contracting dropped by 2.96 percent, both weighing on the sector’s overall performance.
In contrast, the financial sector remained relatively stable, registering a minimal change of just 0.04 percent. Positive contributions came from the National Bank of Oman, which rose by 4.81 percent, and Omnivest, which gained 3.71 percent. Offsetting these gains were Sohar International Bank and Bank Nizwa, which declined by 1.42 percent and 1.87 percent, respectively.
“Furthermore, recent developments indicate that Oman’s industrial sector has achieved significant economic growth, becoming a leading contributor to the country’s GDP,” said George Khoury.
“This robust performance may positively influence the industrial sector within the stock market, enhancing investor confidence and potentially driving up the stock prices of companies operating in this sector,” he further added.
