Oman's stock market edges higher as liquidity returns ahead of Q3 earnings

Muscat: The Omani stock market returned to the upside during the week. The MSX 30 index rose 0.59% to close at 7,598.51 points on Thursday, ending a two-week losing streak. Activity recovered sharply. The volume of shares traded jumped 55.23% week-on-week and traded value climbed 52.47%. The next major catalyst will be preliminary Q3 results over the coming weeks.“On the domestic front, S&P Global’s rating which cited fiscal consolidation measures and improved economic performance also underpinned the index. Market participants additionally focused on geopolitical developments and US-Iran talks,” according to an industry watcher. “Although mediators pursued efforts to reach a diplomatic settlement between the two countries, prolonged tensions and unclear negotiation timelines could continue to cap further upside,” said Daniel Takieddine Co-founder and CEO, Sky Links Capital Group.Oil prices remained volatile amid the ongoing uncertainty and concerns over the developments in the region. Reports of a potential US military buildup could fuel caution, while markets continue to react to any changes in maritime conditions and diplomatic progress. At the same time, elevated prices provide a floor for Oman’s stock market. Meanwhile, attention remained on US economic data this week. Lower-than-expected PCE figures and job market data as well as softer messaging from some Federal Reserve governors led to a decrease in interest rate hike expectations in October, which could support risk appetite. At the sector level, the industry index finished the week at 10,066.06 points, advancing by 1.60%. OQ Base Industries surged by 3.16%, while Oman Cables Industry rose by 0.15%. Meanwhile, Oman Cement eased by 0.77%.The financial index rose by 0.90%, closing at 13,699.87 points. Bank Dhofar posted solid gains of 3.86%, while Al Anwar Investment was up by 1.95%. National Bank Oman finished the week with a 0.82% increase. At the same time, Oman Emirates Holding, Omnivest, Bank Muscat, and Madina Takaful declined by 4.76%, 1.48%, 0.94%, and 0.90%, respectively. The services index settled at 3,032.07 points, up by 0.76%. Abraj Energy Services, Ooredoo and AlBatinah Power climbed by 1.48%, 1.27% and 0.51%, respectively. Asyad Shipping and Al Jazeera Services closed the week with more limited gains of 0.48% and 0.40%, respectively. OQ Exploration and Production retreated by 0.83%. “Looking ahead, investors will continue to watch for any de-escalation signals that could ease tensions and improve sentiment. Any substantive updates could lift markets, while prolonged geopolitical uncertainty could keep risks in place,” Daniel Takieddine further added.