Short week limits performance on Oman stock market

Muscat: The Omani stock market witnessed a marginal performance for its primary index during the past week, displaying a 0.03 percent increase, according to an analyst.

“The market recorded some volatility despite the shorter trading week, which saw the main index stabilise to a certain extent after recording strong increases for most of this month,” said Daniel Takieddine, CEO MENA BDSwiss.
“Despite its rebound, the market remained near its previous lows for the year and could stay on a downtrend overall,” he further added.

Trading volumes declined drastically compared to previous weeks as trading was limited by the National Day holiday during the last two days of the week. Despite their fall, volumes remained near levels seen during previous months. Bank Muscat, OQ, and Oman Telecom dominated trading volume this week while the latter was the most traded in terms of value.

The financial sector retreated slightly and was weighed by the performance of Ahli Bank which fell 2.94 percent and the National Bank of Oman (NBO) which lost 1 percent. The sector saw some positive performance with Bank Muscat rising 1.84 percent and Muscat Finance increasing 8 percent while some other financial institutions remained without significant change.

The industrial sector recorded a 0.05 percent increase and witnessed mixed performances among individual sectors with large declines like Salalah Mills which saw a drop of 10 percent. Others like Al Anwar Ceramic and Al Maha Ceramics recorded respective gains of 0.59 percent and 2.27 percent.

The services sector stood out and grew by 1.22 percent this week, extending gains for a second successive week and approaching levels seen at the beginning of the month. The sector saw significant increases like Dhofar Generating which surged 12 percent as well as some losses such as Sharqiyah Desalination which declined 6.82 percent. Utility companies were among the best performers. As such, Dhofar Generating, Al Batinah Power, and Al Suwadi Power all experienced substantial gains with 12 percent, 9.52 percent, and 9.25 percent, respectively.

At the same time, the Omani stock market could remain exposed to the retreating oil prices which continue to drop after hitting a peak in September, Daniel Takieddine said. “Investors could remain vigilant after the Organisation of Petroleum Exporting Countries (Opec) postponed its meeting ahead of new clues regarding production policy,” he added.

“On a brighter note, the World Bank's recent update on the GCC economies delivered an optimistic outlook for the Omani economy in the forthcoming year, while the non-oil sector remains strong. This positive sentiment might contribute to improving performance and limiting downside potential over the medium term,” Daniel Takieddine said.