Muscat: The Muscat Stock Exchange (MSX) 30 index of the Oman stock market closed the week with a positive performance, gaining 1.77 percent.
"This marked the second consecutive week of increases for the index, partially correcting the sell-off experienced during the second half of October," according to one analyst.
"Despite this recent improvement, the outlook remains uncertain, while the market could be exposed to price corrections if traders act to lock in their profits, particularly after this week's strong gains," said George Pavel, CEO of Capex.com Middle East.
However, changing expectations regarding monetary policy in the US could help improve sentiment. The Federal Reserve could lean toward a softer stance after U.S. inflation data came in lower than expected, she added. "As a result, interest rate cuts could be closer than previously thought and could help reduce pressure on the economy in Oman and increase risk appetite among local and international investors," George said. Pavel. At the same time, some uncertainty could persist. New data is released ahead of the December monetary policy meeting.
Oil markets could also remain a source of risks for the Oman stock market. Crude oil prices have been falling since late September and show no signs of slowing down. "Global demand concerns could continue to weigh on energy prices, while geopolitical risks in the Middle East, which initially created supply concerns, remain contained," he added.
The three key sectors of the market recorded mixed results. The financial sector led gains in the market with a rise of 1.56 percent, extending gains for the second consecutive week, and was led by Bank Muscat. The latter gained 7.51 percent and Ominvest 7.50 percent. Banks such as Bank Dhofar and Sohar International Bank posted losses, while Al Madina Investment Holding was the market's best performer this week.
The services sector recovered after four consecutive weeks of losses and rose 0.61 percent. The sector recorded strong performance from Oman Education & Training Investments, which gained 26.48 percent, followed by Renaissance Services, which jumped 7.22 percent. Oman Telecom, which saw an improvement in its revenue and profits in the third quarter of this year, posted profits along with OQ and Abraj, helping to push the sector higher.
In contrast, the industrial sector saw a decline of 0.65 percent and continued its multi-week decline. Compared to the previous week, trading volume increased by more than 836 percent. Trading in Bank Muscat shares dominated the market and accounted for more than 91 percent of the traded value and more than 87 percent of the traded volume in the Oman stock market this week.
ยฉ Muscat Media Group Provided by SyndiGate Media Inc. (Union.info).
