Muscat: The share market in Oman saw a volatile week amid global and regional uncertainties, according to an analyst. “While it was able to bounce back to some extent this week from its long decline, with a positive performance, the MSX 30 ended with a price correction on its last trading day,” said Hani Abuagla, senior market analyst at XTB.
As a result, the market may remain exposed to further losses. Geopolitical tensions in the region remain a source of risk and may continue to weigh on sentiment, he added.
The value and volume traded on the exchange continued their decline for the second week in a row. Both values have fallen from their peaks at the end of last month. “The market benefited from the introduction of OQ Gas Networks during that period. However, trading volume is still higher than in previous months despite the decline,” said Hani Abuagla.
The market was mainly supported by the performance of the financial sector, which registered a gain of 1.10 percent this week. However, services and industrials sectors fell, extending their multi-week declines, although losses were more limited than in previous weeks. The financial sector performance was led by the progress of Bank Dhofar and Ahli Bank. Bank Dhofar recorded one of the best performances in the market this week.
“Banks may remain a focus for investors as the economy continues to feel the weight of high interest rates. At the same time, changing expectations for monetary policy may affect stock performance and sentiment. As a result, attention may remain on the Federal Reserve and US economic data, particularly after the latest US job market data,” he said.
In this regard, traders reacted to the comments of the Federal Reserve governors this week and could monitor their upcoming interventions next week. “While expectations were leaning toward an end to the rate hike cycle, doubts returned after Jerome Powell’s comments. As a result, the exact start of rate cuts next year becomes more uncertain,” Hani Abuagla said.
At the same time, oil prices continued to fall as attention turned to economic conditions globally and concerns about demand levels returned, adding some downside risks to the stock market.
“Additionally, oil-producing countries such as Saudi Arabia could continue to extend production cuts in an attempt to support prices. Geopolitical tensions in the Middle East could continue to be a source of concern and could push prices higher if the conflict widens,” he added .
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