Bear market takes over in Oman
The Oman stock index plunged some 25 percent this year, reaching its lowest level in four years on Thursday, reported Khaleej Times. The Muscat Securities Market lost a further 2.45 percent on Thursday, falling to 186.9 points, down from 191.6 a week earlier.
The volume of shares trading hands during the last week was only 1.96 million, worth 1.87 million rials ($4.86 million), compared with 2.4 million shares trading hands the previous week, with a total value of 3.3 million rials.
Much of the blame is being put on corporate businesses. “Investors are waiting for companies’ third-quarter results but, considering what they have seen in the first half of the year, they do not expect major gains,” market analyst Nasser Said Al Mughairy told Khaleej Times.
Further cause for the recent bearish market is the lack of liquidity. This is caused by the Omani government’s unwillingness to spend significant amounts of cash on major projects which would create instant jobs and disposable income. –(Albawaba-MEBG)