Oman’s stock market softens on geopolitical concerns

Muscat: The Omani stock market closed the week slightly lower, with the MSX 30 index down 0.58% to 7603.23 points. Overall market capitalisation slipped by 0.08% while the value of shares traded increased by 3.04%, and the number of shares traded inched higher by 2.46%.The postponed Gulf-Iran diplomatic meeting weighed on sentiment, dampening hopes of tension relief and a solution to reopen the Strait of Hormuz. Caution remains in place, especially amid low shipping traffic and persistent maritime disruptions, according to an industry watchers. “Attention also remains on US President Donald Trump’s meeting with Gulf countries next week, as possible de-escalation signals could boost sentiment,” said Joseph Dahrieh, Managing Director at Tickmill.“While oil surged earlier amid the ongoing risks and the shutdown of the East-West pipeline, it retreated later this week following slightly eased supply concerns on Saudi efforts to return pipeline capacity online,’ he added. Markets also focused on the Federal Reserve’s latest decision. The central bank raised interest rates by 25 basis points, its first hike since July 2023 and signaled possible monetary tightening ahead. The move could dampen investor sentiment and weigh on global stock markets, including Oman’s MSX 30, as the country’s central bank followed the Fed’s move, raising its repo rate by 25 basis points to 4.5%. At the sector level, the financial index inched higher by 0.44% this week, closing at 13,618 points. The services index edged lower by 1.55%, finishing at 3029 points. Meanwhile, the industrial sector eased by 0.55%, closing at 9891 points. Looking ahead, Joseph Dahrieh further said, Sentiment could be shaped by clear progress in diplomatic efforts, material updates on the Oman-Iran shipping corridor, or improved conditions in the Strait of Hormuz.”“Traders are also on the lookout for de-escalation signals from Donald Trump’s meeting with Gulf countries next week. At the same time, the impact of the recent rate hikes and any future Fed guidance could influence market sentiment,’ he further added.