Muscat: The Oman stock market experienced some stability this week, in contrast to its negative performance in the previous week, as stated by an analyst.
Despite this, there was still significant volatility throughout the week, with no clear direction. The main index saw a slight decline of 0.12 percent, despite a notable increase in trading volume and value compared to the previous week. This lack of direction leaves the market vulnerable to downside risks and potential price corrections.
However, there is a growing optimism among investors due to improving global sentiment, particularly after the Federal Reserve indicated a more accommodative monetary policy. This positive sentiment could potentially fuel a more risk-on attitude among investors and boost stocks globally, including in Oman. However, it is important to note that falling energy prices could still pose risks to the market.
The performance of different sectors varied during the week, with the industrial sector being the only one to close positively. Industrial stocks showed strength in the market, experiencing a rise of 0.97 percent. Galfar Engineering and Contracting stood out with an impressive gain of 9.59 percent, the second-highest in the market, and contributed significantly to the sector's overall trading volume.
On the other hand, the financial sector ended the week on a negative note, dropping by 0.17 percent. Bank Nizwa and Bank Muscat were the major contributors to the total volume and value traded in the market, accounting for over 50 percent. Within the financial sector, Oman United Insurance performed exceptionally well, achieving one of the highest market gains at 7.89 percent. However, Ahli Bank lagged behind, recording a fall of 3.07 percent.
The services sector also experienced a decline, ending the week down by 0.95 percent. While there were some increases within the sector, such as OQ Gas Networks closing up by 1.32 percent, major stocks like Oman Telecom recorded negative performances, with a decline of 1.85 percent, which had a negative impact on the overall market.
Looking ahead, the market could receive support from the Oman Investment Authority's strategy to launch several IPOs in the future. Muatasim Alfudhaili highlighted that this initiative aims to elevate the country's investment status and strengthen the Omani stock market, making it more attractive to both local and international investors.
