Oman Shares Rise To 2-Month High As Drop Is Seen Overdone

Oman’s benchmark stock index climbed to the highest level in more than two months amid speculation this year’s decline is overdone given prospects for corporate earnings.

National Aluminium Production (NAPI), which exports to Germany, the U.K. and Singapore, advanced to the highest intraday level in almost a week. Galfar Engineering & Contracting SAOG (GECS), a construction company, headed for the highest close since June 28. The MSM30 Index (MSM30) gained for a seventh day, rising 0.1 percent to 5,596.65, the highest intraday level since July 3, at 11:43 a.m. in Muscat. The Bloomberg GCC 200 Index fell 0.1 percent.

Oman’s benchmark has declined 1.7 percent this year, leaving the 30 companies trading at an average 9.8 times estimated earnings. That’s lower than Dubai, Saudi Arabia and Qatar and compares with 10.9 times for the MSCI Emerging Markets Index, according to data compiled by Bloomberg. Dubai’s measure has gained 15 percent this year, while Saudi’s index is up 11 percent.

“Oman has underperformed for quite some time in terms of overall activity and it was attractive,” said Kanaga Sundar, head of research at Gulf Baader Capital Markets SAOC in Muscat.

National Aluminium surged 3.6 percent to 0.233 rial, the highest intraday level since Sept. 4. Galfar gained 0.8 percent to 0.392 rial, extending its rally for the year to 16 percent.

Dubai’s DFM General Index (DFMGI) fell 0.6 percent and Kuwait’s measure dropped 0.5 percent. Abu Dhabi’s ADX General Index added 0.2 percent, while Bahrain’s gauge and Qatar’s climbed 0.3 percent.

Bloomberg