Muscat: The Omani stock market experienced a negative performance this week, losing 0.87 percent after four weeks of uncertainty and volatility, led by the financial sector, particularly banking stocks, according to an analyst.

“The market was impacted by the continuous decline in oil prices and mixed second quarter results that failed to support the market. The market is susceptible to further decline if oil prices continue to fall,” said George Khoury, Global Head of Education and Research at CFI.

The financial sector was the worst performer during the week, declining by 1.21 percent. Leading banks such as Sohar International Bank, Bank Muscat, and Ahli Bank recorded negative performances, with declines of 1.44 percent, 0.40 percent, and 1.32 percent respectively.

These banks represented close to 50 percent of the trading volume this week in the entire market.

The services sector followed with a 0.39 percent loss this week. Abraj Energy Services declined by 1.34 percent, while Al Batinah Power and Al Suwadi Power were down by 2.70 percent and 2.63 percent respectively. These stocks shared a pattern of uncertainty in recent weeks after a strong rebound in previous months.

The industrial sector also experienced a negative performance as well, declining by 0.27 percent. Al Anwar Ceramic and Al Maha Ceramics were down by 1.75 percent and 3.11 percent respectively, while Galfar Engineering and Contracting declined by 4.38 percent. National Detergent was one of the worst-performing stocks this week, with a decline of 6.67 percent.

Despite the recent market downturn, Oman’s broader economic indicators remain relatively stable, said George Khoury. “The country’s inflation rate, one of the lowest rates in the GCC, slowed down slightly to 0.7 percent in June 2024 from 0.94 percent during the previous month. The country could to see lower debt levels and stronger growth this year,” he added.

“The stock market could benefit from a softer monetary policy as investors expect a start in interest rate cuts in September this year. Other interest rate cuts are anticipated after that in 2024 and 2025 and could help fuel a rebound in performances,” George Khoury further said.

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