Oman's stock market moved towards growth in the past week. The MSX 30 index reached 7,598.51 points, marking a 0.59 percent increase, ending two weeks of consecutive declines. Trading volume surged significantly, growing by 55.23 percent compared to the previous week, while the value of transactions also increased by 52.47 percent. The next main catalyst for the market will be the preliminary results for the third quarter in the coming weeks.
Domestic and International Impacts on the Market
On the domestic front, the S&P Global rating, which refers to improved financial measures and economic performance, was another supportive factor for the index. Additionally, market participants paid attention to geopolitical developments and negotiations between the United States and Iran. Greg Stanton, founder and CEO of Sky Links Capital, stated: "Although mediators are striving to reach a diplomatic agreement between the two countries, long-standing tensions and the uncertain timing of negotiations could prevent further increases."
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Oil Price Volatility and Its Impact on the Market
Oil prices fluctuated amid ongoing uncertainties and concerns regarding regional developments. Reports of a potential increase in U.S. military presence could heighten caution in the market, while markets react to any changes in maritime conditions and diplomatic advancements. Meanwhile, high prices could create a support floor for Oman's stock market.
Attention also turned to U.S. economic data this week. The PCE statistics, which were below expectations, along with labor market data and the dovish messages from some Federal Reserve officials, reduced expectations for a rate hike in October, which could help increase risk appetite.
At the sector level, the industrial index ended the week with a 1.60 percent increase, reaching 10,066.06 points. OQ's base industries saw a 3.16 percent increase, and Oman Cables Industries grew by 0.15 percent. Meanwhile, Oman Cement declined by 0.77 percent.
The financial index also rose by 0.90 percent, reaching 13,699.87 points. Dhofar Bank experienced a 3.86 percent growth, while Al Anwar Investment continued with a 1.95 percent increase. National Bank of Oman also finished the week with a 0.82 percent rise. In contrast, Oman Emirates Holding, Ominvest, Bank Muscat, and Muscat Takaful faced declines of 4.76 percent, 1.48 percent, 0.94 percent, and 0.90 percent, respectively.
The services index increased by 0.76 percent, reaching 3,032.07 points. Abraaj Energy Services, Ooredoo, and Al Batinah Electricity saw increases of 1.48 percent, 1.27 percent, and 0.51 percent, respectively. Conversely, OQ Exploration and Production experienced a 0.83 percent decline.
Finally, Greg Stanton emphasized: "Investors will closely watch for any signs of de-escalation that could improve sentiment. Any significant updates could push markets forward, while geopolitical uncertainties may maintain risks."
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