JEDDAH, 10 October 2005 — The Capital Market Authority has suspended an investor who sold large quantities of shares in two companies after publicly praising their prospects, the Saudi Press Agency said.
Announcing its third move against price manipulation and fraud this month, the CMA said the investor bought stakes of more than five percent in Food Products and Saudi Industrial Development.
He then gave newspaper interviews praising the companies’ future strategies and prospects, before quietly selling off large numbers of shares in both firms, the CMA said.
It said the investor has been stopped from buying or selling Saudi shares and could be fined.
Another trader is being investigated for not declaring a stake of more than 5 percent he built up in services company Mubarrad, the CMA said.
Meanwhile, the Saudi stock market made hefty gains of 314.87 points as the Tadawul All Share Index (TASI) closed at 14,875.41. The index was higher by 2.16 percent. The Industrial index registered over 1,300 points increase to 39,239.32 and the Banking index was also higher by 574.84 points at 33,239.50. The Electricity and Agriculture indices were down yesterday while rest were higher.
Out of 77 stocks, 39 were higher while 38 were trading down yesterday.
Al-Rajhi Banking & Investment Corp. shares were up by 3.31 percent at SR1,890.50 as the bank announced 82 percent increase in nine-month net profit. Arab National Bank (ANB) shares fell slightly yesterday at SR908.25 despite its announcement of 57 percent rise in profit.
Saudi Arabia Fertilizers Co. shares rose by 9.98 percent at SR1,082.25, followed by Bishah Agriculture by 9.93 percent at SR354.25, Zamil Industrial by 8.30 percent at SR600, Ahmed H. Fitaihi Co. by 7.27 percent at SR243.25, Arabian Pipe Co. by 6.35 percent at SR519 and Glass Co. by 5.22 percent at SR635.
However, Saudi Land Transport Co. shares plunged by 8.83 percent at SR268, followed by Food Products Co. 8.31 percent at SR218, Saudi Industrial Services Co. by 7.64 percent at SR259.75, Saudi Livestock by 7.11 percent at SR109, Saudi Industrial by 6.18 percent at SR242 and Thim’ar by 4.18 percent at SR229.
Saudi Basic Industries Corp. shares closed 4.32 percent higher at SR1,612.
— With input from Reuters
