Oman stock market softens on geopolitical caution and softer oil prices

Muscat: The Omani stock market closed this week slightly lower, with the MSX 30 index down 0.65% to 7554.13 points. The value of shares traded decreased by 14.81%, while the number of shares traded slid by 21.25%. Attention was on revived US-Iran talks, which helped stabilise the market to some extent. However, persistent maritime disruptions and the lack of a concrete diplomatic timeline capped upside, according to an industry watcher. 

While the possible reopening of the Strait of Hormuz reignited hopes for de-escalation, continuous energy-flow risks and low shipping traffic continued to weigh on sentiment. “Softer oil prices amid increased hopes of normalisation also created some pressure, especially as Oman crude prices declined,” said Andrei Constantin, Commercial Director and Trading Adviser at TFP Software. 

Meanwhile, markets also focused on Fed speeches this week following last week’s interest rate decision. The support for potentially higher interest rates maintained expectations of continued monetary policy tightening, especially as S&P Global’s Flash US Composite PMI Output Index surged this month to its highest level since July 2021. This further strengthens the possibility of more hikes and could pressure global sentiment and Oman’s MSX 30 index. 

At the sector level, the industrial sector rose slightly by 0.17% this week, closing at 9907.92 points. Oman Cement jumped by 5.18%, while Jazeera Steel Products increased by 0.54%. Voltamp Energy, OQ Base Industries, and Oman Cables Industry declined by 1.60%, 1.56%, and 0.15%, respectively. 

The services index edged lower by 0.67%, finishing the week at 3009.25 points. Asyad Shipping slid by 7.96%, followed by Renaissance Services, Ooredoo, and Al Batinah Power, each recording losses of 2.81%, 1.88%, and 0.51%, respectively. Meanwhile, Phoenix Power advanced by 2.17%, while Al Jazeera Services rose by 1.20%. 

Meanwhile, the financial index decreased by 0.29% this week, closing at 13,578.28 points. Sohar International Bank, Al Anwar Investment and Omnivest declined by 2.08%, 1.91%, and 0.98%, respectively. Bank Dhofar, Bank Nizwa, Bank Muscat, and National Bank of Oman closed with limited increases. 

“Looking ahead, traders will likely remain focused on clear progress in US-Iran talks and the prospect of the Strait of Hormuz reopening. Any material updates regarding de-escalation and improved shipping conditions could lift markets, while disruptions can continue to pose risks. At the same time, any further Fed guidance could influence market sentiment,” he further added.