Dubai: The GCC Investor Sentiment Index slipped by 7.7 points in April, but remained in positive territory at 113.1, according to Shuaa Capital's GCC Investor Sentiment Report, a monthly survey that reports on the current and future expectations of the investment community in the GCC region.

The Shuaa GCC Investor Confidence Index and its country sub-indices have a range between 0 and 200.

A number greater than 100 represents positive sentiment while a number lower than 100 represents negative sentiment.

This comes at a time when global markets face numerous challenges, the report said. The decline follows the year's highest index level of 120.8 in March after Dubai World and Nakheel presented restructuring proposals to creditors.

The slide in the GCC Index was largely driven by Saudi Arabia and Oman, as their indices dropped by 7.9 and 4.6 points to 128.4 and 112.1 points respectively, the report said. The biggest gainer this month was Bahrain, as its Investor Confidence Index rose by 2.4 points to reach 106.

"Given the integration of the GCC into the global economy in recent years, it comes as no surprise that the GCC is impacted by economic challenges stemming from Europe and North America, resulting in a decline in investor confidence," said Sameer Al Ansari, Chief Executive Officer of Shuaa Capital, in a statement.

When asked about the current valuations of regional and international stocks, investors said a range of them were undervalued and that the GCC markets were the most attractive.

The Abu Dhabi Stock Exchange led the way with 56.9 per cent, up 22.4 per cent since March. Another market in positive territory in April was the Dubai Financial Market, which for the second time running was the month's biggest gainer as it moved from 25 per cent in March to 51.7 per cent, the report said.

The Nasdaq Dubai was also a positive mover in April as it gained 10 per cent to 20.7 per cent.

Shiv Prakash, an investment analyst with MAC Capital Advisors, said that the Saudi and Qatari markets are attracting good invesments. The real estate and construction sector are expected to continue to struggle with record decrease in profits, as surveyed investors responded with -15.5 per cent on balance, the report stated. "I think the transportation and logistics sectors like Air Arabia and Aramex are performing well despite the recession," Prakash said. Telecom would be another attractive sector, he added.