The Omani stock market saw positive gains at the end of the week, with a 1.54 percent increase, marking a turnaround after two months of losses. The positive trend was driven by anticipation of a potential Fed rate cut next month, buoying regional market sentiment despite challenges from declining oil prices and geopolitical tensions in the GCC region. George Khoury, the Global Head of Education and Research at CFI, noted that increased trading volume and a strong performance from the financial sector were key factors driving the market upward, although it remains within a two-year price range.
Throughout the week, all sectors in the Omani market demonstrated positive trends, with the financial sector being the standout performer. Al Omaniya Financial Services saw a surge of 9.93 percent, making it one of the top performers, while Global Financial Investment Holding also showed strong performance with a 5.41 percent increase. Other notable contributors included Al Sharqiya Investment Holding and Bank Nizwa, which rose by 1.37 percent and 1.92 percent, respectively. The services sector also posted a modest gain of 0.23 percent, with Musandam Power leading the way with an impressive 23.73 percent increase.
In the industrial sector, progress was more subdued with an overall gain of 0.15 percent. Oman Flour Mills continued its upward trajectory with a 1 percent increase, while Muscat Thread Mills showed a solid performance with a 2.02 percent increase, and Oman Cement added 0.5 percent to its value. The positive market performance was further boosted by Moody’s upgrade of Oman’s outlook from stable to positive, while maintaining the Ba1 credit rating. This change was attributed to declining public debt levels and improved oil revenues, which could enhance investor confidence and bolster market sentiment.
George Khoury highlighted the significance of these developments in light of potential Fed rate cuts and possible GCC central bank follow-ups, which may further support the Omani economy. However, he also pointed out that global economic uncertainties and oil price volatility remain critical factors that could affect Oman’s economic path in the future. Overall, the positive market performance and upgrades to Oman’s credit outlook offer a glimmer of hope for investors and signal potential opportunities for growth and stability in the future.
