Muscat: The Omani stock market’s Muscat Stock Exchange (MSX) 30 index closed the week on a positive note, rising 1.77 percent.
“This marked the second consecutive week of gains for the index, partially correcting the sell-off experienced in the second half of October,” according to one analyst.
“Despite this latest improvement, the outlook remains uncertain, while the market may face price corrections if traders move to secure their gains, especially after this week’s strong gains,” said George Pavel, General Manager at Capex.com Middle East.
However, changed expectations for monetary policy in the US may help to improve sentiment. The Federal Reserve could lean toward a softer stance after U.S. inflation data came in lower than expected, he added. “As a result, interest rate cuts may come closer than previously thought and could help reduce pressure on the economy of Oman and increase risk appetite among local and international investors,” said George Pavel. At the same time, there may still be some uncertainty, as new data is released ahead of the policy meeting in December.
The oil markets may also remain a source of risks for the Omani stock market. Crude oil prices have been falling since late September and show no signs of slowing. “Concerns about global demand may continue to weigh on energy prices, while geopolitical risks in the Middle East, which initially created concerns about supply, remain contained,” he added.
The market’s three key sectors posted mixed performances. The financials sector led the market with a gain of 1.56 percent, extending profits for the second week in a row, and was led by Bank Muscat. The latter got 7.51 percent together with Ominvest with 7.50 percent. Banks such as Bank Dhofar and Sohar International Bank recorded losses, while Al Madina Investment Holding saw the market’s best performance this week.
The services sector rallied after four consecutive weeks of losses, rising 0.61 percent. The sector recorded a strong performance from Oman Education & Training Investments, which rose 26.48 percent, followed by Renaissance Services, which gained 7.22 percent. Oman Telecom, which saw an improvement in revenue and profit in the third quarter of this year, registered gains along with OQ and Abraj that helped propel the sector to the upside.
Conversely, the industrial sector experienced a 0.65 percent decline and continued its multi-week slide. Compared to the previous week, trading volume increased by more than 836 percent. Trading in Bank Muscat shares dominated the market, accounting for more than 91 percent of traded value and more than 87 percent of traded volume on the Omani stock market this week
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