Muscat: The Omani stock market extended its decline during the week, with the MSX 30 index down by 3.89% to 7,379.41 points. The number of shares traded slipped by 17.71%, while the value of shares traded retreated by 24.40%. The total market cap inched lower by 0.46%. Persistent maritime disruptions in the Strait of Hormuz and regional unease kept the market in negative territory.
The absence of firm US-Iran negotiation timelines is likely to restrain risk-taking, particularly after reports that American troops and diplomats are being moved from posts in the Middle East, and that plans for new military operations are in place, which heightened concerns over the prospects of renewed escalations and reprisals.
Crude gained as a result, even though it had retreated from a five-month peak on Monday following Donald Trump’s decision to lift sanctions and tariffs from Russia, said and industry analyst. “Traders are likely to keep weighing energy-flow risks, leaving prices prone to swings. On the other hand, the MSX 30 index could find support from higher oil, especially as Oman crude for December delivery rose $3.35 to $110.18/bbl from $106.83/bbl,” said Rania Gule, Senior Market Analyst at XS.com – MENA.
Attention has also remained on inflation, as firmer oil prices are strengthening the case for tighter US monetary policy. The Fed is broadly anticipated to leave rates unchanged next week, yet markets may keep an eye on potential hikes in December and early next year. “The Fed's announcement will likely set the tone for global sentiment, with PCE inflation figures due afterwards,” she further added.
At the stock market level, most sectors and stocks finished the week lower. The services index declined by 2.64%, closing at 2,938.98 points, led by Asyad Shipping, OQ Exploration and Production, OQ Gas Networks, and AlJazeera Services, each recording losses of 7.49%, 6.09%, 3.13%, and 2.80%, respectively.
The financial index weakened by 2.38%, finishing at 13,469.17 points. Oman Emirates Holding fell by 10.83%, followed by Bank Muscat, Sohar International Bank, and Bank Nizwa, each declining by 7.73%, 6.38%, and 4.64%, respectively. Simultaneously, National Bank Oman rose by 1.81%.
Meanwhile, the industry index dipped by 1.84%, settling at 9,829.50 points. Voltamp Energy posted modest gains of 1.66%, while Oman Cement increased by 1.42%. On the other hand, OQ Base Industries lost ground by 10.38%. Oman Cables Industry and Jazeera Steel Products also recorded losses of 1.31% and 0.97%, respectively.
“Looking ahead, Oman’s market may remain under pressure while regional tensions and energy-flow risks in crucial shipping lanes linger,” said Rania Gule. “Investors will watch US-Iran diplomacy and next week’s Fed decision, as any hawkish signal could weigh on sentiment. Stronger oil prices could still limit losses,” she further added.