Muscat: The Omani stock market closed lower during the week, with the MSX 30 index declining by 1.97% to 7,678.05 points. The number of shares traded decreased by 33.05%, while the value of shares traded pulled back by 34.42%. The total market cap slipped by 1.01%. The market came under pressure from intensifying tanker incidents in the Strait of Hormuz and geopolitical uncertainty.
Regional tensions capped risk appetite this week, as negotiations dragged on and fears of renewed escalation grew, according to an industry watcher. “Oil prices rose as caution towards supply disruptions lingered, and could continue to climb if the situation remains unchanged. However, the country’s economy is still expected to grow by 4.1% this year, which could support sentiment and help offset external pressure,” said Joseph Dahrieh, Managing Director at Tickmill.
Attention during the week also centred on new US inflation readings ahead of the Federal Reserve’s October meeting. Consumer prices advanced by 3.7% from a year earlier, topping the 3.6% forecast, and producer prices surged 6.3% annually, the fastest pace since December 2022. The figures supported the case for future interest rate increases, although an October move is not priced in. Such tightening could pressure stock markets globally, including Oman’s.
At the sector level, the services index fell by 3.21%, closing the week at 3,018.72 points. Phoenix Power dipped by 21.37%. Asyad Shipping and AlBatinah Power followed, declining by 5.15% and 2%, respectively. OQ Gas Networks inched lower by 3.49% following an 8.73% decrease in Q3 net profits compared to the previous year. At the same time, Abraj Energy Services inched higher by 1.39% while Renaissance Services finished the week with a limited increase of 0.73%.
The industry index slipped by 2%, closing at 10,013 points, with Voltamp Energy, OQ Base Industries, and Oman Cement retreating by 3.72%, 2.97% and 1.40% respectively. Jazeera Steel Products finished the week with a 0.96% decrease amid a loss of 10.75% in Q3 net profit.
Meanwhile, the financial index pulled back by 1.57%, finishing the week at 13,797.87 points. Madina Takaful weakened by 7.89%, while its net profit declined by 81.98%. Bank Muscat, Sohar International Bank, and Bank Nizwa all followed, down 2.93%, 3.13%, and 2.58%, respectively. Omnivest closed the week with a small decrease of 0.49%.
Looking ahead, Joseph Dahrieh said, “Oman’s stock market may still find support from local fundamentals despite persistent geopolitical uncertainty. Better shipping conditions could help underpin the index, while continued tanker incidents could continue to weigh on sentiment,” he further added.