MUSCAT: The Muscat Stock Exchange highlights the crucial role of market fundamentals in influencing stock prices, with fluctuations often driven by the dynamics of demand and supply. Understanding how these two forces interact can help investors anticipate potential price movements.
When demand for a particular stock surpasses its available supply, there is upward pressure on the stock price, leading to an increase in value. This is a common occurrence when investors are eager to purchase a specific stock, thus driving its price higher.
On the other hand, when the supply of a stock outweighs the demand, downward pressure tends to pull the stock price lower. This scenario usually happens when there are more sellers than buyers, leading to a price decline.
Though a company’s financial performance is a key driver in determining its stock price, the balance between Bid (buying interest) and Ask (selling interest) remains equally significant. These market orders directly affect the stock’s short-term price fluctuations, which investors must consider when making trading decisions.
