Oman's stock market declined by 3.89% last week, reaching 7,379.41 points. The number of shares traded decreased by 17.71%, and the value of shares traded fell by 24.40%. The total market value also decreased by 0.46%. Ongoing maritime disruptions in the Strait of Hormuz and regional insecurities have kept the market in a negative state.
Impacts of Political Uncertainties
The lack of a specific timeline for U.S.-Iran negotiations is likely limiting risk appetite. Reports indicate that U.S. military forces and diplomats are relocating from their bases in the Middle East, and plans for new military operations are underway, raising concerns about the potential escalation of tensions and retaliations.
Read more: IMF Predicts Economic Production Decline in the Middle East
Oil Market Developments and Their Impacts
Despite a drop in oil prices from their highest level in five months, oil prices rose following Donald Trump's decision to lift sanctions and tariffs against Russia. Experts believe that traders will pay attention to the potential risks associated with energy flows, which could affect prices. Meanwhile, the MSX 30 index may receive support from higher oil prices, especially with the increase in Omani oil prices for December delivery to $110.18 per barrel.
In the stock market, most sectors and stocks declined at the end of the week. The services index fell by 2.64% to reach 2,938.98 points. Asyad Shipping, OQ Exploration and Production, OQ Gas Networks, and Al Jazeera Services faced declines of 7.49%, 6.09%, 3.13%, and 2.80% respectively.
The financial index also decreased by 2.38% to 13,469.17 points. Oman Emirates Holding shares fell by 10.83%, while Bank Muscat, Bank Sohar, and Bank Nizwa declined by 7.73%, 6.38%, and 4.64% respectively. Meanwhile, Bank Muscat faced an increase of 1.81%.
Finally, the industrial index fell by 1.84% to 9,829.50 points. Voltamp Energy saw an increase of 1.66%, while OQ Basic Industries faced a decline of 10.38%.
According to experts, the Omani market may remain under pressure as regional tensions and energy flow risks continue along vital maritime routes. Investors will be attentive to U.S.-Iran diplomacy and the Federal Reserve's decision next week, as any aggressive signals may impact sentiment. However, higher oil prices could limit declines.
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