Oman’s stock market advances on strong fundamentals in weekly trading

Oman’s stock market extended its weekly advance, with the MSX 30 index rising 1.27% to close at 7,628 points. Market capitalisation increased 1.71%, while the value of traded shares surged 116.40% and the number of shares traded climbed 123.08%.

Ahmed Negm, head of MENA market research at XS.com, said the market benefited from Saudi-Omani diplomatic efforts aimed at easing geopolitical tensions and from strong domestic fundamentals. Total oil production rose 11.3% to 233.80 million barrels, while first-half banking credit growth reached 12.3% year on year. Non-oil exports also showed resilience, rising 11.4%.

Saudi-Omani talks on regional developments and possible de-escalation measures helped improve market sentiment. Donald Trump’s statement that the campaign against Iran would not last long also eased investor concerns. Crude prices rose sharply during the week amid renewed regional escalation, although they eased toward its end.

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The market benefited from Saudi-Omani diplomatic efforts that aimed to ease geopolitical tensions, as well as strong local fundamentals.

The industrial index led the market, gaining 3.49% to 9,816 points. Voltamp Energy rose 8.14%, while OQ Base Industries, Oman Cables Industry and Jazeera Steel Products gained 4.40%, 1.32% and 1.78%, respectively. The financial index edged up 0.38% to 13,434 points, supported by Omnivest, Madina Takaful and Sohar International Bank.

The services index advanced 1.52% to 3,060 points. Al Batinah Power rose 7.07%, while Oman Telecom and Phoenix Power gained 1.24% and 1.07%. OQ Gas Networks and Abraj Energy Services declined. Negm said traders would watch for signs of diplomatic progress, oil-price movements, shipping conditions through the Strait of Hormuz and US data that could influence Federal Reserve rate expectations.

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Traders will closely monitor oil price movements and upcoming US economic data that may influence Federal Reserve interest-rate expectations. At the same time, strong local fundamentals could continue to underpin markets despite geopolitical uncertainty.