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MSX Index Declines in Weekly Trading

MSX Index Declines in Weekly Trading

Muscat: The Omani stock market concluded the week on a negative note, marking its fourth consecutive week of declines, according to an analyst.

The main index retreated by 0.36 percent and could continue to slide toward new lows if sentiment remains pessimistic,” said Daniel Takieddine, CEO Mena BDSwiss.

“However, the market recorded smaller losses than during the previous few weeks and could stabilise to a certain extent if conditions improve. The shorter trading week saw range-bound price movements as well as weaker trading volumes and mixed sector performances,” he further added.

The financial sector weighed significantly on the market’s performance for a second week in a row and declined the most, shedding 1.96 percent over the whole week with several banks retreating. 

The National Bank of Oman recorded losses exceeding 6.5 percent while Sohar Bank, Bank Nizwa, and Ahli Bank also closed in the red.

The industrial sector also faced setbacks, declining by 0.77 percent, and continued to seesaw, trading mostly in a range over many weeks.

 Among individual stocks, Jazeera Steel Products and Almaha Ceramic experienced drops of 2.81 percent and 5.08 percent respectively.

The service sector helped the market limit its losses thanks to its strong gains this week. Services stocks climbed 2.25 percent, closing for the third successive week in the positive territory. 

Ooredoo emerged as one of the top performers and most traded stocks, securing an 8.5 percent gain. Other stocks like Sembcorp Salalah recorded strong performances as well.

Investors could monitor the market for new IPOs after OQ’s plan to float two of its units. The operations could help attract more investors and could boost trading volume and performances across the board on the Omani stock market.

“However, geopolitical tensions in the region could remain a source of risks for the Muscat stock market as investors could remain cautious,” Daniel said.

“Oil prices could also impact sentiment while they remain well below last year’s peak, although this week’s rebound could positively affect the stock market if gains continue,” he further added.
Source: ZAWYA