Monday 27 / January / 2025
Muscat: The Muscat Stock Exchange (MSX) ended the week with a 0.39% decline, snapping a three-week winning streak, according to an industry expert.
“Market sentiment was dampened by external factors, particularly developments in US policy following President Trump's inauguration,” said George Pavel, General Manager at Naga.com Middle East.
“His potential new energy policy, focused on boosting domestic production, cast shadows over oil prices, which retreated after four consecutive weeks of appreciation. This policy shift holds particular significance for oil-dependent economies like Oman, where energy revenues remain a cornerstone of economic growth,” he further added.
He pointed out that the market's performance reflected these concerns, overshadowing the generally positive fourth-quarter earnings releases from listed companies. “The previous week had seen a broad-based rally driven by encouraging corporate results, but this momentum was interrupted as investors reassessed positions in light of potential changes in US energy policy and their implications for regional markets,” George Pavel said.
Sector performance this week was mixed. The services sector emerged as the worst performer, declining by 1.39%. Notably, OQ Gas Networks and OQ Exploration and Production saw decreases of 0.74% and 0.29%, respectively. Additionally, Abraj Energy Services experienced a decline of 0.78%.
The financial sector also faced negative performance, dropping by 0.41%. Global Financial Investment fell sharply by 4.40%, while Al Omaniya Financial Services and Al Sharqiya Investment Holding decreased by 0.59% and 2.67%, respectively.
In contrast, the industrial sector was the only sector to post positive results this week, gaining 1.04%. Galfar Engineering and Contracting surged by 6.78%, and Construction Materials Industries experienced a remarkable increase of 36.73%. Voltamp Energy also saw a modest rise of 0.21%.
Oman’s economic trajectory, as highlighted by the latest IMF report, reaffirms Oman’s strengthening macroeconomic stability, projecting GDP growth to rebound to 4.1% in 2025 as hydrocarbon production recovers and non-oil sectors expand steadily (3.2%).
“Fiscal reforms have reduced public debt to 35% of GDP and maintained a 6.2% fiscal surplus in 2024, enhancing sovereign credibility. While oil revenues keep markets sensitive to Opec+ dynamics, Vision 2040-driven diversification—particularly in renewables, logistics, and manufacturing—is mitigating structural risks,” George Pavel said.
The IMF highlights low inflation (0.6%) and a resilient banking sector as key stabilisers but cautions that geopolitical tensions or prolonged oil price volatility could dampen investor sentiment.
“Recent sovereign credit upgrades and efforts to deepen capital markets (e.g., Muscat Stock Exchange reforms) signal improving attractiveness for non-oil FDI, though sustained reform implementation remains critical to long-term market resilience,” he further added.
