Muscat Stock Exchange Hits 10-Year High: Implications for Investors and Entrepreneurs in Oman
MUSCAT: The Muscat Stock Exchange (MSX) main index achieved its highest level in a decade last week, closing above 6,100 points for the first time since 2015. This increase was propelled by robust buying from local investment funds and institutions, bolstered by expectations of improved corporate earnings.
Investor confidence appeared to rise at the start of 2026, as traders anticipated preliminary financial results from listed companies. On January 5, the index surpassed the 6,000-point mark, its highest since May 2016, ultimately closing the week at 6,126 points, the strongest level since August 2015. The index recorded a weekly gain of 230 points, benefiting from broad support across investment, banking, industrial, and services stocks.
The financial sector was the primary driver of this rally, with its index surging 588 points to finish at 10,572 points. The industrial index saw an increase of 284 points, the services index rose by 76 points, and the Sharia-compliant index gained 27 points, ending at 556 points.
Key contributors to the gains included Bank Muscat, Bank Dhofar, National Bank of Oman, OQ Gas Networks, Ominvest, Voltamp Energy, Al Safa Foods, Al Jazeera Steel Products, Omantel, and Ooredoo, along with various finance, energy, and industrial firms.
Throughout the week, 61 securities advanced, 14 declined, and 15 remained unchanged. Market capitalization increased by RO 815.2 million, reaching RO 32.9323 billion by Thursday’s close, driven by higher share prices and new listings of bonds, sukuk, and closed-end funds.
The exchange announced its tenth sovereign sukuk issue worth RO 200 million and recorded a capital increase for Sembcorp on the closed market, raising its capital to RO 48.4 million.
Trading volume soared by 65% to over RO 266 million, compared to RO 160.5 million the prior week, while the number of executed transactions rose 22% to 26,686. Sohar International led trading with RO 66.6 million, accounting for 25% of the total value, followed by OQ Exploration and Production, Bank Muscat, OQ Base Industries, and Asyad Shipping.
Liva’s mandatory convertible bonds due in 2024 posted the largest gains, climbing 36%. Other notable performers included Al Sharqiyah Investment, Dhofar Food and Investment, Ominvest, and Bank Nizwa, all of which recorded double-digit increases. In contrast, Majan Glass led the declines, followed by Muscat Insurance, Oman Cables Industry, Musandam Power, and Oman Cement.
Special Analysis by Omanet | Navigate Oman’s Market
The recent surge in the Muscat Stock Exchange, reaching its highest level in a decade, signals a reinvigorated investor confidence, offering new opportunities for businesses to capitalize on rising corporate earnings and market activity. However, this optimism brings risks of overvaluation, particularly in sectors experiencing rapid gains, compelling investors and entrepreneurs to exercise caution and conduct thorough market analyses. As the financial sector leads this upward trend, identifying robust investment avenues in diversified industries will be crucial for sustainable growth.
