JEDDAH, 3 January 2006 — The Saudi Capital Market Authority (CMA) has fined three stock traders SR169.2 million for violating regulations, the Saudi Press Agency reported yesterday.

The agency did not name the traders but said they violated the rules while dealing in the shares of eight companies, including Saudi Electricity Company (SEC) and Riyad Bank.

The CMA announcement came as the Tadawul All-Share Index (TASI) broke the 17,000 barrier and closed at an all-time high of 17,165.66 points.

The index gained 453.02 points, or 2.71 percent, in the first two days of trading this year after surging 103.66 percent in 2005.

Over SR30.8 billion worth of shares changed hands yesterday.

The CMA banned the three dealers from working with any company listed on the Tadawul or holding membership on their boards of directors for a period of three years.

The first trader was fined SR146.66 million, the second SR17.17 million and the third SR5.36 million, the agency said.

The CMA said the three violated Article 49 of the Capital Market Law and Article 3 of the Code of Conduct for stock dealings.

On June 18, 2005, the CMA fined 44 board members and executives of 35 listed companies for violating Article 33 of the market law.

Faisal Alsayrafi, president & CEO of Financial Transaction House (FTH), told Arab News that “the recent period of consolidation witnessed over the past week confirmed signals that the market is likely to maintain its ‘steam run’ and continue an uptrend over the short term.

“The cement sector announced various new projects that supported the positive market run over the past two days. Favorable anticipation of year-end results and the holiday and Haj season have positively affected many of the service sector players. The latest upsurge in shares was fueled by a significant rise in volume trading as many institutional and individual investors rearranged their portfolios and fund strategies for the new year.”

Alsayrafi predicted that this dynamic activity would continue this year, but at a slower pace.

“During 2006, the market is likely to continue offering various diversified investment opportunities such as initial public offerings (IPOs), capital increases, mergers and acquisitions, and the introduction of new investment instruments,” he said, adding that, “the market is likely to pursue an uptrend during 2006. However, it is unlikely to repeat the performance of 2005.”