RIYADH: Gulf stock markets fell 1.3 percent in May, diverging sharply from a global equity rally fueled by artificial intelligence optimism, as the third month of disruption in the Strait of Hormuz weighed on investor sentiment and oil market volatility.
According to Kamco Invest’s monthly report, while the MSCI GCC Index declined 1.3 percent over the month, the MSCI World Index surged 5 percent, extending a record 15 percent-plus gain over the past two months driven by AI infrastructure stocks.
The Gulf’s underperformance comes as investors continue to assess the economic fallout from the ongoing regional conflict, which has disrupted shipping routes, heightened uncertainty in energy markets and raised concerns about growth prospects across the region.
“The critical waterway remained closed as the war dragged on for the third consecutive month affecting crude oil volatility, although there were some positive statements made toward the end of last month,” the report added.
Oman recorded the steepest decline in the region, with the MSX 30 Index falling 7.3 percent in its first monthly loss after 10 consecutive months of gains. Despite the drop, the market remained up 32.2 percent year to date.
