Muscat Stock Exchange Falls 163 Points Amid Regional Geopolitical Tensions

Muscat: The Muscat Stock Exchange (MSX) ended last week sharply lower, with its benchmark index falling 163 points to close at 7,480 points, as escalating geopolitical tensions in the region weighed on investor sentiment despite improved corporate earnings.

According to the weekly report issued by the exchange, all major sector indices closed in negative territory. The Industrial Index recorded the largest decline, dropping 178 points, followed by the Financial Index (-145 points), the Services Index (-84 points), and the Sharia Index (-15 points).

Although several listed companies reported stronger preliminary financial results for the first half of 2026, the positive earnings failed to lift share prices as investors remained cautious amid ongoing regional uncertainty.

Trading Activity Declines

Trading activity also slowed during the week, with the total value of shares traded falling from RO247.8 million to RO137.05 million.

The number of executed transactions declined by 28%, dropping from around 58,000 trades to 41,758 transactions.

Meanwhile, the market capitalisation of the Muscat Stock Exchange fell to approximately RO38.05 billion, resulting in weekly losses of RO244.3 million.

Most Traded Stocks

OQ Basic Industries was the most actively traded stock during the week, recording transactions worth RO22.7 million, accounting for 16.5% of total trading value.

It was followed by:

• OQ Exploration & Production – RO21.7 million
• Bank Muscat – RO18.8 million
• Bank Sohar International – RO17.9 million
• OQ Gas Networks – RO16 million, representing 11.6% of total trading value.

Top Gainers and Losers

Among the week’s best-performing stocks:

• Oman Chromite surged 19.1% to RO3.500
• Oman Oil Marketing gained 9.9% to RO1.205
• Al Madina Investment rose 9% to 36 baisas
• Oman Finance Free Bonds 2022 advanced 6.2%
• Oman Finance Services Bonds 2026 climbed 5.6%

The biggest losers included:

• Al Batinah Development & Investment (-21.4%)
• Sohar Power (-18.3%)
• Oman & Emirates Investment Holding (-10.6%)
• Oman United Insurance (-10%)
• Salalah Port Services (-9.9%)

Bank Nizwa Proposes Alizz Islamic Bank Merger

In a major corporate development, Bank Nizwa announced it has submitted a non-binding letter of intent to Oman Arab Bank proposing the acquisition and merger of Alizz Islamic Bank.

The proposal values Alizz Islamic Bank at approximately 1.2 times its book value, with the transaction expected to be financed through a combination of new equity and Tier 1 perpetual sukuk.

The plan also includes a strategic investment by Ominvest, which would acquire up to a 20% stake in Bank Nizwa through a subscription to newly issued shares. Ominvest confirmed that its board has approved participation in the proposed financing structure.