MSX concludes week on a high note

Muscat: The Omani stock market concluded the week on a high note, showing a robust gain of 0.90 percent and breaking the significant resistance level of 4,800 points, according to an analyst.

“This achievement marks the third consecutive month of positive performance, setting the stage for potential future gains,” said Hani Abuagla, Senior Market Analyst at XTB.

“Despite ongoing geopolitical tensions and the looming OPEC+ meeting expected at the end of the week, the Omani market displayed resilience, being less affected compared to other regional markets. These elements, coupled with the Personal Consumption Expenditures (PCE) inflation data from the US, heavily influenced market sentiment throughout the week,” he further added.

In the financial sector, notable increases were evident, with Sohar International Bank up by 0.72 percent, Bank Nizwa rising by 3.70 percent, and Oman Arab Bank leading the gains at 7.59 percent. This sector overall saw an uplift of 1.9 percent, continuing its trend of strong performance. The industrial sector also ended positively, albeit with a modest increase of 0.19 percent. Within this sector, Asaffa Foods rose by 0.25 percent, Galfar Engineering & Contracting by 0.61 percent, and Oman Cables Industry by a significant 1.92 percent.

The services sector, though only slightly up by 0.05 percent, showed varied performances among its leading stocks. OQ Gas Networks reported a gain of 0.70 percent, whereas telecommunications companies faced a downturn, with Oman Telecom and Ooredoo declining by 0.19 percent and 0.33 percent respectively.

“Looking ahead to next week, the market is poised to be heavily influenced by the outcomes of the OPEC+ meeting,” said Hani Abuagla. “An anticipated extension of oil supply cuts could weigh on sentiment and could impact the GCC and Omani stock markets given their heavy reliance on oil revenues,” he further added.

On the economic front, the World Bank's projection this week adds a layer of optimism, forecasting Oman’s economic growth to reach 1.5 percent in 2024 due to increased gas production and ongoing diversification efforts. Additionally, last week Fitch reaffirmed Oman's credit rating at BB+ with a stable outlook, projecting a budget surplus of 2.2 percent of gross domestic product (GDP) in 2024.

“These positive economic indicators could enhance investment sentiment towards Oman’s financial market, attracting attention from both foreign and local investors,” said Hani Abuagla.