Omani stock market advances for second week, led by services sector

Muscat: The Omani stock market concluded its week with a 0.30 percent gain, marking its second consecutive positive week as it approaches its April high, according to an industry expert.

“The market’s trajectory, similar to other regional markets, is significantly influenced by the anticipated Federal Reserve rate cut,” said Joseph Dahrieh, Managing Principal at Tickmill.

“Investors are divided on whether the cut will be 25 or 50 basis points, with the initiation of the easing cycle likely stimulating business activity. However, declining oil prices have introduced some negative sentiment which can exacerbate if crude continues to trend lower,” he further added.

The services sector led the market with a robust 1.94 percent gain. This growth was driven by strong performances from companies such as Barka Water and Power, which surged by 11.86 percent, SMN Power Holding, which increased by 7.62 percent, and Renaissance Services, which rose by 3.01 percent.

The financial sector also showed positive growth, continuing its upward trajectory with a 0.96 percent rise. Notably, Omnivest saw a substantial increase of 6.06 percent, while Bank Muscat experienced gains of 0.78 percent, and Bank Nizwa was up by 0.94 percent.

On the other hand, the industrial sector faced challenges, declining by 0.31 percent. This downturn was primarily driven by a significant drop in Oman Chromite, which fell by 13.64 percent, followed by Oman Cables Industry, which decreased by 3.15 percent. Oman Cement saw a slight decline of 0.25 percent.

Adding to this dynamic, Moody’s upgrade of the outlook for six Omani banks to positive is a crucial development for the banking sector and the broader economy.

“Such developments could support a positive trend in the Omani stock market, particularly in the financial sector, potentially bolstering investor confidence and contributing to wider economic growth in Oman,” said Joseph Dahrieh.