The Omani stock market posted a negative performance during the week, declining by 0.78%. This performance was in line with other markets in the region, which also suffered setbacks on the last day of trading due to the latest geopolitical developments. “This led to a risk-off behavior, prompting investors to move towards safe-haven assets,” said George Pavel, General Manager at Naga.com Middle East.
This week’s downturn followed six consecutive weeks of recovery in the market after a long period of decline. “While this week’s losses were limited, the escalations in the regional geopolitical sphere indicate potential for continued fear and pressure in the market next week,” said Pavel. Oil prices saw a significant jump this week, particularly following military operations in Iran.
“While higher oil prices could benefit regional economies, geopolitical risks may continue to weigh on stocks,” Pavel added. The downturn was evident across all sectors.
Geopolitical tensions impact Omani stocks
The Industrial sector led the losses with a 1.44% decline. Notable drops included Al Anwar Ceramic, which plunged 6.09%, and Al Maha Ceramics, which decreased by 4.21%. Gulf Mushroom Products also contributed to the sector’s negative performance with a 0.45% fall.
Similarly, the Services sector registered a 0.79% loss. OQ Gas Networks was notably active as one of the week’s most traded stocks, closing 1.27% lower. Other decliners included National Gas with a steep 6.45% drop, Asyad Shipping, which fell by 1.6%, and Oman Telecom, which was down by 0.71%.
The Financial sector also trended negatively, recording a 0.56% decline. This drop was influenced by a 6.21% fall in Bank Dhofar’s shares. Other notable losses in the sector included Oman Emirates, which decreased by 4.05%, and Global Financial Investment, which fell by 0.94%.
