Muscat – Global equity markets staged a strong rebound in April, more than offsetting first-quarter losses, but GCC stock markets underperformed the broader rally as geopolitical tensions linked to the Middle East war weighed on investor sentiment, according to a report by Kuwait-based Kamco Investment.

Globally, stock markets posted broad-based gains, with the MSCI World Index rising 10% in April – its strongest monthly performance in more than five years. Emerging markets surged 14.5%, while developed markets gained 9.5%. In the US, the S&P 500 Index advanced 10.4%, and the Nasdaq Composite Index jumped 15.3%, supported by a sharp rally in tech stocks.

Asian markets outperformed their Western counterparts, delivering double-digit gains of around 13%. European markets, however, posted relatively modest gains in low single digits, reflecting economic headwinds linked to ongoing regional conflict.

In commodities, crude oil prices climbed sharply to a four-year high by the end of the month, as escalating military activity in the region raised concerns over supply disruptions in already constrained markets.

Against this backdrop, GCC equity markets managed to post marginal gains in April but lagged the global recovery. The MSCI GCC Index rose just 0.4% in April, marking a mild rebound after two consecutive months of declines. Gains were broad-based across most regional exchanges, although Saudi Arabia’s market ended slightly lower due to profit-taking, according to Kamco Investment report.

Saudi Arabia’s Tadawul All Share Index (TASI) was the only GCC benchmark to close in negative territory, slipping 0.6% to 11,187.7 points as investors booked profits following earlier gains and geopolitical uncertainty dampened sentiment. Despite the monthly decline, Saudi Arabia remained one of the region’s stronger performers on a year-to-date basis.

The UAE markets recovered part of March’s losses. Abu Dhabi’s FTSE ADX General Index rose 2.7%, rebounding from an 8.9% decline in March, which had marked its steepest fall in six years. Dubai’s DFM General Index led GCC gains, climbing 6.1% in April after a sharp 16.4% drop the previous month.

Oman continued to stand out as a regional outperformer. The MSX 30 Index increased 2.5% to close at 8,369.48 points, extending its upward momentum for a tenth consecutive month. All sector indices in Oman posted gains for a second straight month, highlighting broad-based market strength despite regional volatility. Oman also remained the best-performing GCC market year-to-date, with gains of 42.7%, the report indicated.

Elsewhere, Qatar’s market recovered from March losses, with the QE 20 Index rising 2.9%, while the broader Qatar All Share Index gained 3.1%, indicating renewed investor participation across segments. Kuwait delivered one of the strongest performances in the region, with the Boursa Kuwait All Share Index advancing 5.3%, making it the second-best performing GCC market for the month.

Bahrain also recorded steady gains, with the Bahrain All Share Index rising 3.8% to close at 1,972.1 points.