Muscat: The Omani stock market exhibited a modestly positive performance during the week, following last week's significant decline, with the main index gaining 0.16 percent, according to an analyst.

“In terms of sector performance, results were mixed. The financial and industrial sectors experienced gains, unlike the service sector, which saw a negative performance,” said Ahmed Negm, Head of Market Research MENA at XS.com.

“The market could find support in climbing oil prices. However, increased geopolitical tensions and changing monetary policy expectations in the US, could contribute to further volatility,” he further added.

The financial sector recorded the most gains, increasing by 3.73 percent where Oman Emirates Holding was at the forefront with a 30.30 percent increase, followed by Al Madina Investment Holding with a 22 percent gain. Al Anwar Investment also saw a notable rise of 4.65 percent, making it one of the most traded stocks in terms of value and volume this week.

The industrial sector saw a rise of 2.15 percent, led by Al Anwar Ceramics, which increased by 4.97 percent. Galfar Engineering and Contracting also saw significant gains, up by 4.70 percent, and Asaffa Foods experienced a 2.94 percent increase.

Conversely, the service sector declined by 0.94 percent, primarily due to a drop in telecommunication stocks. Oman Telecom and Ooredoo were down by 2.31 percent and 1.31 percent, respectively. Abraj Energy Services also faced a downturn, with a 4.98 percent decline.

At the same time, S&P has revised Oman's outlook to positive, reflecting the government's commitment to fiscal reforms and the beneficial impact of higher oil prices on the economy. The rating agency expects Oman's fiscal deficit and government debt to improve considerably over the medium term, largely due to the substantial increase in government revenues from elevated oil prices.

“This positive outlook bodes well for Oman's economy and financial markets going forward, as the country presses ahead with economic diversification initiatives while benefiting from a more favourable oil market environment,” said Ahmed Negm.

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