Saudi market slump felt in Oman

Muscat: The drop in the Saudi stock market had a ripple effect on the Omani market, which dropped marginally by 27 points at its close on Wednesday.

According to Mustafa Ahmad Salman, CEO of United Securities Brokerage firm, the GCC market pressured and the Muscat Securities market grew sentimental.

"The drop started after news of a downward trend in the Saudi market at around midday here," he said.

"From 100 points down at one stage it recovered well and closed only 27 points down."

Salman also pointed out that the market was strong and the volume for the day was good.

Zuhair Al Khabouri, a long-time investor in the market, believes that there was no need to be frightened and that the market will rebound.

"Panic-stricken small investors are selling out of fear of a market crash."

The outcome, he pointed out, was an erratic market trend. "It will take at least six to eight weeks for the market to completely stabilise," he believes.

The index closed at 7,690.29, down 27 points or 0.35 per cent. While the general index dipped, the banking sector continued its rally.

All other sectors suffered, with the services sector taking a heavier toll.

A broker feels that short selling, especially by GCC investors, could have triggered the slight slump.