DUBAI: Saudi Arabia’s stock market rose on Monday, starting 2024 on a positive note, on expectations of interest rate cuts by the US Federal Reserve this year, while the region’s other major markets were closed.

Markets expect the Federal Reserve to start cutting interest rates in March, according to the CME FedWatch tool, a shift from assumptions last month.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed’s decisions because most regional currencies are pegged to the dollar.

Saudi Arabia’s benchmark index rose 0.6%, supported by gains in almost all sectors with Alinma Bank climbing 3.2% and Saudi Arabian Amiantit Co surging 10%.

The construction materials maker Amiantit reported it settled 572.7 million riyals ($152.73 million) worth financial obligations with a local creditor bank.

In Oman, the stock index ended 1.5% higher as National Bank of Oman and Sohar International Bank gained 3.6% and 3.1% respectively.