Oman's stock market this week saw a decrease of 1.97% in the MSX 30 index, reaching 7,678.05 points. The number of shares traded decreased by 33.05%, and the value of shares traded also fell by 34.42%. Overall, market value dropped by 1.01%. This market decline was due to the escalation of tanker incidents in the Strait of Hormuz and geopolitical uncertainties.
Pressure of Regional Tensions on Market Sentiment
Regional tensions this week limited risk appetite in the market. Prolonged negotiations and concerns about a renewed escalation affected the business environment. In this context, oil prices rose due to concerns about supply disruptions and may continue to rise if the current situation persists. However, it is expected that Oman's economy will grow by 4.1% this year, which could bolster positive sentiment and offset external pressures.
Performance of Various Market Sectors
At the sector level, the services index fell by 3.21% to end the week at 3,018.72 points. Phoenix Power faced a decline of 21.37%. Additionally, Asyad Shipping and AlBatinah Power decreased by 5.15% and 2%, respectively. OQ Gas Networks also fell by 3.49%, with a reported 8.73% drop in net profit for the third quarter compared to last year. Meanwhile, Abraj Energy Services ended with a 1.39% increase and Renaissance Services saw a modest increase of 0.73%.
The industrial index also decreased by 2% to 10,013 points, with Voltamp Energy, OQ Base Industries, and Oman Cement experiencing declines of 3.72%, 2.97%, and 1.40%, respectively. Jazeera Steel Products also ended down by 0.96%, while its net profit had dropped by 10.75% in the third quarter.
In the financial sector, the index fell by 1.57% to 13,797.87 points. Madina Takaful faced a decline of 7.89% and an 81.98% drop in net profit. Additionally, Bank Muscat, Bank Sohar, and Bank Nizwa ended down by 2.93%, 3.13%, and 2.58%, respectively. Omnivest also concluded the week with a slight decrease of 0.49%.
According to Greg Stanton, CEO of Tickmill, Oman's stock market may still receive support from local fundamentals despite geopolitical uncertainties. Improved transportation conditions could support the index, while ongoing tanker incidents may negatively impact market sentiment.
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