MUSCAT: Oman’s benchmark MSX30 surged 2.13 per cent on Thursday to 7,177.57 points, extending a sharp run-up that has lifted the market to its highest levels in more than a decade and reignited debate over whether the rally is fundamentally driven or showing signs of froth.
An official market report showed trading value climbed 19.4 per cent to RO 98.13 million, compared with RO 82.17 million in the prior session, while market capitalisation rose 1.375 per cent to about RO 35.75 billion.
The index has gained nearly 20 per cent so far this year and is up more than 9 per cent since Sunday, according to Bloomberg.
In a social media post, Azza al Habsi, an economist at Ominvest, described the latest leg of the rally as “nothing short of historic”, writing: “I’m still stunned by how we moved from 6,000 to 7,000 in just one month”. She said the market is coming off a 28 per cent gain in 2025 and is up 22 per cent year-to-date as of February 13.
The 28.2 per cent rise in 2025 made Muscat Stock Exchange the best-performing equity market in the GCC last year, according to regional market reporting.
Al Habsi said it is natural for some investors to raise concerns about bubble-like gains, but argued that the rally is broadly supported by fundamentals — citing profitability improvements across listed companies, strong earnings and dividends, and a step-change in liquidity, alongside market-making activity, a return of local retail participation and a gradual inflow of foreign capital.
She also pointed to ongoing digital upgrades by the exchange — including trading infrastructure, new indices and post-trade services — and a stronger IPO pipeline that has helped deepen the market.
Beyond company-level drivers, investors are watching structural catalysts. Oman regained investment-grade status with Fitch Ratings upgrading the sovereign to BBB- with a stable outlook on December 8, 2025, a move widely seen as supportive of broader foreign participation in Omani assets.
Another focus is the market’s longer-term ambition to move from frontier to emerging market status with global index providers — a theme that traders say can draw more institutional attention if liquidity and investability thresholds are met consistently in large counters such as Bank Muscat and OQ Exploration and Production SAOG, while investors also track corporate actions involving Sohar International Bank.
Still, Al Habsi cautioned that “some FOMO may be present” and said any correction — if driven by profit-taking rather than weakening earnings — could be healthy, stressing her comments were not investment advice.
Oman Observer is now on the WhatsApp channel. Click here
