Omani Stock Market Falls in Weekly Trading

Muscat: The Omani stock market experienced a negative performance this week, declining by 1.54 percent, which erased the gains accumulated over the past three weeks, according to an analyst.

“This downturn ends a series of continuous weekly advances that began two months ago. The OPEC+ meeting decision, coupled with a drop in oil prices, significantly influenced the overall market conditions,” said George Khoury, Global Head of Education and Research at CFI.

“The market may undergo further corrections next week as investors might look to take profits before the holiday period,” he further added.

The banking sector was predominantly negative this week, diverging from the generally positive trends observed in the regional markets. Notably, Bank Muscat's shares fell by 2.32 percent, Sohar International Bank decreased by 0.71 percent, and Bank Nizwa declined by 1.79 percent. This sector's downturn contributed significantly to the market's overall negative performance, with the financial sector’s losses reaching 1.77 percent.

The services sector also faced losses, down by 0.72 percent. Within this sector, Al Suwadi and Al Batinah Power saw significant declines of over 5 percent, while telecommunications stocks such as Oman Telecom dropped by 0.19 percent. Arab Energy Services decreased by 0.34 percent and OQ Gas Networks declined 0.70 percent.

In contrast, the industrial sector showed positive momentum, with Voltamp Energy leading the gains by 7.56 percent, continuing its upward trend. Additionally, Galfar Engineering and Contracting rose by 3.05 percent.

“Despite this week's performance, several optimistic macroeconomic indicators were reported this week, enhancing the 2024 economic outlook for Oman,” said George Khoury.

“The first quarter of the year saw a 12.8 percent annual increase in Oman’s foreign exchange reserves, bolstered by a significant trade surplus primarily from heightened oil exports,” he added.

Furthermore, there was a notable reduction in public debt, decreasing from OMR 15.3 billion at the end of 2023 to OMR 14.5 billion. The Oman Investment Authority (OIA) also reported a healthy growth in its total assets, estimated at a 7.4 percent year-on-year increase, with a return on investment for 2023 at 9.95 percent, said George Khoury. “These improvements are crucial for reinforcing economic growth and stability in Oman and could enhance investor sentiment toward the Omani economy and its financial markets,” he further added.​