Omani stock market sees loss in weekly trading

Muscat: The Omani stock market experienced its second consecutive weekly decline, closing at -1.93 percent due to ongoing selling pressure from investors, marking the region's poorest performance, according to an industry expert.

“This trend began last week as investors took profits, and it persisted through this week,” said Joseph Dahrieh, Managing Principal at Tickmill. “External factors such as investor caution ahead of the Federal Reserve meeting and inflation data also negatively impacted market sentiment,” he further said.

The market is now on a break for the Eid holidays and will resume trading with a focus on finding new support levels, particularly with the potential boost if oil prices continue to rebound.

The financial sector, led by banking stocks, was the worst performer this week, dropping by 2.05 percent. Banks such as Bank Muscat, Sohar International Bank, and Bank Nizwa saw declines of 0.79 percent, 1.44 percent, and 4.55 percent respectively, continuing the downward trend from last week.

Similarly, the Services Index also declined by 0.11 percent, with significant losses in telecommunications stocks; Oman Telecom and Ooredoo dropped by 3.70 percent and 2.99 percent, respectively, while Renaissance Services fell by 4.10 percent. However, the National Gas stock stood out with an impressive gain of 45.57 percent this week, despite no significant disclosures affecting the stock as per the company's general communication with shareholders.

In contrast, the Industrial sector showed positive momentum, increasing by 1.59 percent. Significant gains were seen in Al Anwar Ceramics and Almaha Ceramics, which advanced by 8.75 percent and 8.93 percent respectively, and Galfar Engineering and Contracting rose by 1.18 percent.

Additionally, with the ongoing implementation of Oman's Vision 2040, the CEO of the Muscat Stock Exchange announced that the exchange is technically prepared to join global indices and emerging markets by 2025.

Efforts to enhance market capitalisation, free float, and liquidity are expected to position the exchange on global watch lists within the next two years. Promising developments such as dual listings with Saudi Tadawul and the introduction of a streamlined trading app may significantly increase trading volumes.

These initiatives, coupled with the exchange's role in supporting private sector funding and attracting foreign direct investment, are likely to draw increased interest in undervalued Omani stocks, potentially stimulating market growth.