JEDDAH, 24 May 2006 — The new Capital Market Authority (CMA) chief yesterday announced a series of measures — including the formation of a capital market company, the setting up of independent investment funds and the establishment of a new stock exchange system — to strengthen the stock market.
Speaking to the Shoura Council’s financial committee, Abdul Rahman Al-Tuwaijeri, who is also secretary-general of the Supreme Economic Council (SEC), emphasized the keenness of Custodian of the Two Holy Mosques King Abdullah and Crown Prince Sultan to restore market stability.
The stock market fluctuated again yesterday. The Tadawul All-Share Index (TASI), after falling below 10,000 points in the morning, recovered slightly in the afternoon session. The index closed 219.72 points or 2.17 percent higher at 10,367.45. The market turnover reached SR13.56 billion.
“The acting CMA chief briefed the Shoura committee on the authority’s plans and strategies to stop the decline of the market and restore confidence of (investors) in the market,” the Saudi Press Agency reported, quoting the consultative body’s Secretary-General Saleh Al-Malik.
“Al-Tuwaijeri explained the CMA’s plan to complete the restructuring of the market through the formation of a capital market company, the creation of investment funds independent from banks and the establishment of a new stock exchange system replacing the existing one,” Al-Malik said.
The Shoura panel thanked the CMA chief for his quick response, his frankness and transparency during the talks and his desire to adopt prudent measures to stabilize the market and protect it from speculators.
King Abdullah appointed Al-Tuwaijeri, a seasoned economist, last week, replacing Jammaz Al-Suhaimi after the Saudi bourse, the largest in the Arab world, lost about 40 percent this year. The SEC had previously taken a series of steps to bolster the bourse.