Sunday 12 / January / 2025
Muscat: The Omani stock market demonstrated resilience with a 0.54% gain during the second week of 2025, marking another consecutive week of positive performance following a critical support level test at the end of 2024, according to an industry analyst.
“This upward momentum has been primarily driven by strengthening oil prices, which have recorded gains for three consecutive weeks. However, the market faces a complex interplay of both supportive and challenging factors,” said Ahmed Negm, Head of Market Research MENA, at XS.com.
On the challenging side, regional markets are experiencing pressure due to shifting US economic dynamics. Recent US economic data suggests the Federal Reserve may limit itself to just one rate cut this year, primarily due to persistent labour market strength. “Adding to this complexity is the political dimension, as concerns about potential inflationary impacts of future Trump administration policies have begun influencing market sentiment,” said Ahmed Negm.
“These factors have created a cautious environment among regional Central Banks, effectively capping the Omani market's gains while putting pressure on neighboring markets,” he further added.
The financial sector emerged as the week's standout performer, posting a 0.95% gain across the board. Leading this upward trend was Bank Muscat with a notable 1.58% increase, while Sohar International Bank advanced by 1.45%. Alanwar Investment's performance recorded a substantial 5.88% increase, demonstrating strong investor confidence in the banking and investment segment.
The services sector maintained positive momentum with a 0.69% increase, primarily driven by energy-related companies. OQ Exploration and Production was one of the leaders in terms of trading volumes and gained 1.49%, while the power generation segment showed strength. Phoenix Power posted an 8.33% increase, with Albatinah Power and Al Suwadi Power following suit with robust gains of 7.35% and 8.96% respectively.
The industrial sector, while posting more modest gains at 0.35%, showed consistent strength across key companies. OQ Base Industries, which dominated trading volumes, advanced by 0.88%. Positive performances were also recorded by Oman Cables Industry and Voltamp Energy, which gained 3.94% and 1.50% respectively, reflecting sustained industrial sector growth.
Supporting this positive market momentum, Oman's macroeconomic outlook appears robust, with gross domestic product (GDP) projected to continue growing in 2025. The country saw a 1.9% GDP growth through Q3 2024, providing a foundation for continued market performance. “Oman's economic diversification efforts and strengthening non-oil sectors could provide the stability needed to sustain the market's positive momentum, particularly benefiting sectors that have shown recent strength such as financial services and the industry,” said Ahmed Negm.
