JEDDAH, 26 December 2006 — The Capital Market Authority (CMA) yesterday approved the Investment Funds law and licensed four companies to provide stock market services to prospective investors in the market. The law was issued as part of CMA’s efforts to organize the market.
The newly licensed companies — Al-Ahli Financial Co., Al-Oula Joujeet Co., Al-Mustathmir and Gulf Investment — will provide services such as consultation, management and preservation of paper money, the Saudi Press Agency said.
Saudi Arabia’s stock index yesterday rose 0.59 percent to 7,859.46 points spurred by gains in Saudi Basic Industries Corp. (SABIC). The agricultural index is the day’s top gainer, surging 4.78 percent.
“This is mostly window-dressing in the last sessions before Eid. Nothing much has changed in terms of sentiment,” says Talal Al-Tawari, head of the GCC equity division at Gulf Investment Corp.
The CMA, the Kingdom’s stock market regulator, recently fined an investor SR2.4 million for carrying out fraudulent transactions. The action was taken against Muhammad ibn Mouaid ibn Yahya Al-Qahtani on the recommendation of a committee set up for settling stock market disputes.