Gulf markets broadly recovered in April on the back of a temporary easing of tensions in the region following a ceasefire agreement and the reopening of the Strait of Hormuz.

Almost all equity indices in the Gulf Cooperation Council (GCC) ended the month in the green with the exception of Saudi Arabia, according to Markaz.

The Dubai Financial Market (DFM) index posted the highest gain of 6.1%, followed by Kuwait, which rose significantly by 5.3%. Other gainers were Bahrain, up 3.8%; Qatar (2.9%) and Oman (2.5%).

Overall, the S&P GCC Composite index gained 1.1%.

The positive performance was also supported by robust corporate earnings, particularly within the banking sector. In the UAE, real estate stocks also propped up the equity market following the resumption of trading and new project rollouts.

The relief measures launched in the Gulf, including SME financing and loan deferrals, coupled with strong fiscal buffers, also supported the regional markets.

Markaz, however, warned that “prolonged instability” could impact growth, fiscal positions, trade and tourism. Weaker sovereigns could also be impacted if tensions continue.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com