Saturday 01 / February / 2025
Muscat: The Omani stock market dropped by 1.32% in its second consecutive week of decline. Although several companies announced dividend distributions during the week, these positive developments were overshadowed by a persistent downturn in oil prices, according to an industry expert.
“Oil markets were affected by US President Donald Trump’s call for lower prices. His strategy to pressure Saudi Arabia and Oped to reduce prices, coupled with increased US oil production, further intensified bearish sentiment among investors,” said Hassan Fawaz Chairman & Founder of GivTrade.
“Additionally, Trump's threats to impose tariffs on goods from China, Canada, and Mexico heightened concerns about slowing global economic growth, which could decrease oil demand. His proposals included a 25% tariff on all goods from Mexico and Canada and an extra 10% tariff on Chinese imports,” he added.
The Omani market was also impacted after the Federal Reserve meeting, where Chairman Powell's tone added to the current uncertainty regarding monetary policy. The market could remain under pressure if oil prices stay low, especially with the upcoming Opec meeting drawing significant attention.
The performance of the Omani stock market sectors remained under pressure this week. The financial sector recorded a decline of 1.01%. In particular, Bank Muscat shed 1.54%, Sohar International Bank dropped 0.71%, and Al Omaniya Financial Services fell 4.76%.
The services sector also weakened, losing 0.97%. Within this sector, OQ Gas Networks slid 2.22%, Abraj Energy Services declined 5.53%, and Oman Telecom finished 1.21% lower.
By contrast, the industrial sector stayed nearly flat at a 0.01% gain. Voltamp Energy rose 4.17%, while Construction Material Industries added 1.49%, and Jazeera Steel Products edged up by 0.32%
