Oman stock market edges higher despite regional tensions

Muscat: The Omani stock market rose for another week, with the MSX 30 index up 0.25%, closing at 7,647.69 points and overall market capitalisation advanced by 1.55%. The value of shares traded declined by 19.57%, and the number of shares traded slipped by 21.48%. 

“While persistent geopolitical tensions weighed on sentiment, the market continued to benefit from strong local fundamentals, higher crude prices, and ongoing diplomatic efforts," according to an industry watcher.  

“On the geopolitical front, regional uncertainty and tanker strikes continue to fuel caution, and Tehran’s warnings of further escalation kept concerns over prolonged tensions and maritime disruptions elevated,” said Abdullah Mahfoodh Al Wahaibi, Coach and analyst in global financial markets. 

At the same time, US President Donald Trump signalled that geopolitically driven crude prices are unlikely to ease until after the November midterms. “While this points to prolonged risks, elevated oil prices could continue to support the Omani energy sector. Markets will also monitor any progress on Strait of Hormuz,” he added. 

Meanwhile, markets focused on U.S. inflation data. August PPI rose 0.4% month-on-month, with the annual rate accelerating to 5.4%, while CPI increased 0.4% and core CPI inched higher to 0.3%. “Along with the surge in oil prices amid regional uncertainty, the data signalled risks of tighter monetary conditions, potentially pressuring risk appetite and stock markets globally, including Oman’s MSX 30 index,” Al Wahaibi said. 

Looking ahead, sentiment could be shaped by any clear progress on diplomatic efforts for improved conditions in the Strait of Hormuz.

“Investors will also closely monitor the Federal Reserve interest rate decision next week, which could affect sentiment and markets. At the same time, strong local fundamentals and elevated crude prices could continue to provide support,” he further added.