Omani stock market gains amid optimism in weekly trading

Muscat: The Omani stock market concluded the week with a positive performance, registering a gain of 1.04 percent according to an industry watcher.

“This upward movement aligns with the broader trend observed across regional markets, reflecting improved investor sentiment. The market's gains can be attributed mostly to external factors, essentially the developments around the US economy, including softer US inflation data, which has bolstered expectations for the Federal Reserve to initiate its easing cycle in September,” said Joseph Dahrieh, Managing Principal at Tickmill.

“This potential move is likely to influence central banks in the region, potentially leading to more favourable credit conditions and stimulating economic growth. Additionally, oil market volatility played a role in shaping market sentiment throughout the week,” he further added.

“Despite this week's positive performance, the Omani stock market remains within a one-year price range and could need additional catalysts to climb higher, he pointed out.

Sector performances this week were broadly positive, with notable gains across key industries:
The financial sector emerged as the top performer, advancing by 1.27 percent. Banking stocks led the sector's gains, with Bank Muscat rising 1.19 percent, Bank Dhofar surging 3.90 percent, and National Bank of Oman climbing 3.77 percent. Al Sharqiya Investment Holding also demonstrated strong performance with a 4.17 percent increase.

The services index also showed robust growth, posting gains of 0.85 percent. Standout performers in this sector included Abraj Energy Services, which rose by 1.35 percent, OQ Gas Networks, up 0.71 percent, Oman Telecom, increasing by 0.70 percent, and Renaissance Services, which saw a significant jump of 4.05 percent.

While more modest in its gains, the industrial sector still contributed positively to the market's overall performance with a 0.33 percent increase. Notable movements within this sector included Jazeera Steel Products, up 0.36 percent, Al Anwar Ceramic, which saw a substantial leap of 5.92 percent, and Oman Cement, rising by 1.01 percent.

“The market could benefit from the Financial Services Authority’s new incentive programme for the Omani capital market, aiming to deepen the market and achieve Oman Vision 2040 objectives. This five-year initiative includes encouraging larger companies to go public and establishing a market for smaller entities,” said Joseph Dahrieh.

“The programme also offers various incentives, including tax benefits, fee waivers, and preferential treatment in government tenders. These measures are expected to enhance market liquidity and attract investments,” he further added.