JEDDAH, 1 July 2007 — The Capital Market Authority (CMA) yesterday took action against two investors and two intermediaries for violating the Kingdom’s stock market regulations and asked them to pay a total of SR410,000 in fine, an official statement carried on its website said.

The CMA said it had found Osama ibn Muhammad Al-Naeem guilty of violating its regulations while dealing with the shares of Ahmed H. Fitaihi Co. and Al-Ahsa Development Co. last year. Naeem was asked to pay SR6,011,930 in profits he gained from the deal in addition to a fine of SR150,000. He was also banned for three years from dealing with stocks of any company listed in the market.

Badr ibn Abdul Aziz Al-Naeem was also convicted of violating the regulations while dealing with the shares of Fitaihi and Ahsa and asked to pay SR5,789,456 in profits made from the deal and SR150,000 in fine. He was also prevented for three years from dealing with any companies listed on the bourse, the website said.

Tarek ibn Saleh Al-Mudawah and Fahd ibn Daraan Al-Hamid of Bank Aljazira’s stockbrokers were found guilty of violating regulations and were fined SR100,000 and SR10,000, respectively. Mudawah’s license was canceled while the license of Al-Hamid was suspended for two years, the CMA said, adding that the actions were taken against violators to strengthen the market’s stability and protect the rights of all stock marked dealers.

However, after falling slightly last week, the Saudi stock market continued its downward march yesterday. The Tadawul All-Share Index (TASI) dropped below 7,000 points mark to close at 6,969.72, down 41.44 points. The index is 12.15 percent lower so far this year.

The only three indices gained yesterday were electricity, insurance and agriculture, while all other indices declined.

In the banking sector, shares of Banque Saudi Fransi, SABB and Samba Financial Group rose. Riyad Bank was the worst performer in the banking sector as its shares plunged 4.87 percent to SR53.75 yesterday.

The insurance sector was in the red as shares of the newly-listed companies took a tumble yesterday. Shares of Arabian Shield Cooperative Insurance Company dipped 9.09 percent to SR60 and SABB Takaful by 5.04 percent to SR132.

Shares of the National Company for Cooperative Insurance (NCCI) gained 0.50 percent to SR100 yesterday.

Saudi Basic Industries Corp. (SABIC) shares also dropped slightly to close at SR110.75.

In the telecom sector, shares of Saudi Telecom Co. (STC) fell 2.92 percent to SR58.25 and Etihad Etisalat by 2.04 percent to SR48 yesterday.

Shares of 34 companies were in positive territory, while 40 companies showed decline in value out of 93 stocks traded yesterday.

Over SR5.23 billion worth of shares changed hands yesterday.