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Muscat – The Muscat Stock Exchange (MSX) saw GCC markets’ steepest monthly decline in November, as global emerging market sell-offs weighed on the region’s equity performance.
The MSCI GCC Index dropped 1.2% last month, following a broader regional downturn. Of the seven GCC exchanges, three posted losses in November.
The MSX led the declines, with its benchmark MSX30 Index falling 3.9%. Saudi Arabia and Abu Dhabi’s indices also recorded losses, down 3.2% and 1.0%, respectively, according to a research note from Kamco Investment.
On the positive side, the Dubai Financial Market bucked the trend, posting a 5.7% gain, while other GCC indices saw only modest advances.
‘November marked the second consecutive month of declines for GCC equity markets, driven by a global rout in emerging markets,’ Kamco Investment noted. ‘Stronger-than-expected economic growth in the US and October’s higher-than-forecast inflation data fueled speculation that the US Federal Reserve would keep interest rates elevated for longer.’
Oman’s MSX30 Index closed November at 4,563.05 points, down 3.9% for the month, after posting a modest 0.8% gain in October.
All three sectors on the MSX saw declines in November. The Services Index took the biggest hit, falling 4.6%, followed by the Industrial Index, which lost 3.8%. The Financial Index dropped 2.9%, contributing to the overall decline in the MSX30 Index.
According to Kamco’s report, heavy losses among key banking stocks weighed on the financial sector, with Bank Muscat dropping 2.3% and the National Bank of Oman falling 7.3%. In the services sector, double-digit declines in stocks like Sembcorp Salalah (-12.7%) and Ooredoo Oman (-11.7%) were pivotal to the Services Index’s downturn.
Oman Education and Investment Training led the gains with a 64.4% rise, followed by Dhofar Cattle Feed (+19.1%) and Oman Fisheries (+6.1%). On the downside, Majan Glass Company plunged 83.9%, while Al Anwar Ceramic Tiles and Galfar Engineering posted declines of 23.4% and 14.8%, respectively.
Overall trading activity on the MSX showed a significant slowdown in November. Total share volume traded fell to 441.7mn shares, down from 653.8mn in October.
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