Good Tidings for Oman’s Stocks
Last Thursday saw an increase in Oman’s blue chip stocks, alongside a higher closing of Gulf markets. This occurred amidst an environment of optimism and hope that America’s Federal Reserve Chair is to announce new measures that will boost the country’s economy, leading to good news for economies around the world.
For Oman it was exciting to see a raise of 5.3 percent in the Renaissance (oil) Services which marked the highest trading volumes in Oman. This followed a substantial low of last week after a financial fraud at Topaz was revealed.
Global Economy Fears
Still, this hasn’t stopped fears for the global economy. Due to a huge slump in the benchmark index (the lowest level ever in two years), fears mounted once more that the world economy may start going back into a recession. Indeed, according to United Securities brokerage manager Adel Nasr, “there is a strong come-back from local pension funds and also foreigners. Lots of asset managers are accumulating [stocks] after the drop we had last week. The upward trend was accelerated by global markets’ sentiment.”
The Flip Side
On the flip side however, there was an increase in Muscat’s benchmark up to 1.2 percent for a second consecutive day. Indeed, trading volumes were the highest since April 24. And even world stocks weren’t having it too rough. The MSCI measurement saw the world equity index increase by 0.3 percent. Investors are now playing the waiting game, with the optimistic hope that Bernanke will reveal the Fed is prepared to offer more stimulus to the world’s largest economy in his upcoming address to central bankers at the yearly symposium in Jackson Hole, Wyoming at the end of this week. While there is definitely positive feelings about what will happen with the global markets (along with some high expectations of drastic measures to be taken), only time will tell which will the pendulum will swing.