Business | Markets

Experts say Omani market is stable

Experts believe that there is no major crisis in the Muscat Securities Market but panic among some investors was causing turmoil for the last week or so.

  • By Sunil K. Vaidya, Bureau Chief
  • Published: 23:50 October 14, 2008
  • Gulf News

Muscat: Experts believe that there is no major crisis in the Muscat Securities Market but panic among some investors was causing turmoil for the last week or so.

"Oman is a bearish market," says Anil Nahar, investment expert, financial adviser and a board member with a leading Omani bank. He said that "cash is king" in Oman and due to the global economic crisis people are holding on to their money. Nahar also believes that government intervention or injecting cash could aggravate the panic in the market. "It could be counterproductive and not necessary at the moment," he advocated.

He also revealed that even oil prices created a bit of panic. "There's no real crisis," he assured investors.

A senior Omani executive with a brokerage firm also said that speculation caused the market's downfall.

"Yesterday's sentiments were positive and are indicative that there's no need to panic," the Omani executive said on condition of anonymity. He said after the assurances by world leaders, the market has stabilised.

"It would stabilise here too," he said. Another senior Omani broker stressed that there was no liquidity problem and there was no need to panic. "The companies here - listed or private - are financially strong so there's no need for investors to panic," United Securities CEO Mustafa Ahmad Sultan told Gulf news.

He concurred with others and said that the slump was due to speculation and panic. "The third quarter results announced by some of the listed companies will definitely lift the gloom," he assured. "The fundamentals here are strong and there's no need to worry," he said.

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