A strong rally in Oman’s stock market is helping revive investor appetite for IPOs and reignite momentum behind the country’s stalled privatization program, writes Bloomberg. Muscat’s benchmark MSM 30 Index is up 18.5% since an April low, driven by credit rating upgrades, macro reforms, and improved performance by recent listings, including OQ Base Industries and OQ Exploration and Production — both of which had initially struggled after going public.

Oman’s IPO volumes had outpaced London’s in 2024, but lackluster early performance dampened sentiment, prompting Oman Electricity Transmission to pause its listing in March. Now, those same stocks are showing signs of recovery — with OQ Base Industries up more than 40% and OQ E&P up nearly 20% since April. The recovery has “restored investor confidence,” said Arqaam Capital’s Rawad Kassouf. Kamco Invest’s Junaid Ansari expects IPO activity to continue but with selectivity on valuations. Meanwhile, “generous dividends” yielding over 7% — among the highest in the GCC — are also helping ease investor concerns about liquidity, he added.

The government’s push to secure emerging-market status from MSCI is also drawing attention. Kassouf said the upgrade could unlock some USD 1 bn in passive and active fund inflows, improve liquidity, and drive re-ratings. Getting there will require more blue-chip listings, bigger freefloats, and consolidation among smaller players — all part of ongoing market reforms. OQ E&P’s share buyback plan might appear to run counter to this goal, but analysts see it as minor and likely offset by the recent rally.

Also in Oman’s favor is two investment-grade credit rating upgrades in under a year, driven by strong non-oil growth and falling public debt. The upgrades have lifted investor sentiment and “bode well for the privatization agenda,” according to Tellimer’s strategist Hasnain Malik.

The Muscat exchange has also been active in introducing liquidity-stabilization tools and market-making programs to boost efficiency. For their part, Omani companies have intensified investor outreach, showing up at more conferences and marketing events. If the rally holds, “investors will begin to see meaningful returns on recent IPOs which will help build confidence,” said Oman Investment Bank ECM head Ankit Garg. He added that momentum could help the sultanate move forward with its listing plans.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning as investors react to Federal Reserve Chair Jerome Powell’s latest remarks signaling a rate cut in September. The Hang Seng is leading the gains, up 1.9%. Japan’s Nikkei, the Shanghai Composite, and the Kospi are all trailing behind.

ADX

10,209

+0.1% (YTD: +8.4%)

DFM

6,126

-0.0% (YTD: +18.8%)

Nasdaq Dubai UAE20

4,992

+0.1% (YTD: +19.9%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

4.2% 1 yr

TASI

10,905

+0.4% (YTD: -9.4%)

EGX30

35,811

+0.5% (YTD: +20.4%)

S&P 500

6,466

+1.5% (YTD: +10%)

FTSE 100

9,321

+0.1% (YTD: +14%)

Euro Stoxx 50

5,488

+0.5% (YTD: +12.1%)

Brent crude

USD 67.82

+0.1%

Natural gas (Nymex)

USD 2.64

-2.2%

Gold

USD 3,413

-0.2%

BTC

USD 113,355

-1.7% (YTD: +20.7%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.49

0.0% (YTD: +0.2%)

S&P MENA Bond & Sukuk

148.48

+0.3% (YTD: +6.1%)

VIX (Volatility Index)

14.22

-14.3% (YTD: -18%)

THE CLOSING BELL-

The ADX rose 0.1% on Friday on turnover of AED 946.2 mn. The index is up 8.4% YTD.

In the green: Gulf Cement (+11.2%), Aram Group (+5.7%) and Multiply Group (+3.7%).

In the red: Al Khaleej Investment (-4.3%), Fujairah Cement Industries (-2.7%) and Hily Holding (-2.5%).

Over on the DFM, the index inched down 0.03% on turnover of AED 450.6 mn. Meanwhile, Nasdaq Dubai was up 0.1%.

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