Saudi Arabia’s stock market started 2024 positively, driven by expectations of U.S. Federal Reserve interest rate cuts this year. The benchmark index rose 0.6%, with gains in various sectors. Oman’s stock index also closed 1.5% higher, supported by gains in National Bank of Oman and Sohar International Bank.
Saudi Arabia’s stock market rose on Monday, starting 2024 on a positive note, on expectations of interest rate cuts by the U.S. 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.
As 2024 kicks off, investors are keeping a keen eye on the Saudi stock market as it makes a positive start. With various factors in play, the market’s performance has been drawing significant attention from both local and international investors. The Saudi economy’s growth trajectory and the dynamic nature of the market have contributed to this optimistic beginning.
The positive momentum can be attributed to several key drivers. One of the contributing factors is the continued implementation of Vision 2030, which has ushered in a wave of economic reforms, further fueling investor confidence. Additionally, a stable oil market and the government’s commitment to diversifying the economy have bolstered the market’s resilience.
Furthermore, the performance of key sectors such as finance, energy, and technology has been robust, exemplifying the diversified investment opportunities present in the Saudi market. This diversification has enhanced the market’s appeal and reduced its exposure to sector-specific risks.
Moreover, the growing presence of foreign investors in the Saudi market underscores the increasing confidence in the economy and its future prospects. This influx of international participation has added a newfound dynamism to the market, amplifying the positive trends.
Amidst this considerable optimism, it is essential for investors to maintain a prudent approach and conduct thorough analysis before making investment decisions. The evolving nature of the global economy further emphasizes the need for a cautious and informed strategy in navigating the market.
With the promising start to 2024, the Saudi stock market presents a compelling landscape for investors, offering a multitude of opportunities for growth and diversification. As the year unfolds, staying attuned to market developments and robust investment strategies will be pivotal for leveraging the potential that the Saudi market holds.
Source: ARY NEWS
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