JEDDAH, 25 February 2006 — The Saudi Capital Market Authority (CMA) announced on Thursday it will reduce the allowed percentage of fluctuation in the value of all shares from 10 percent to 5 percent. The new regulation is to be applied today to the entire market.
Yassin Al-Jefri, an economic analyst at King Abdul Aziz University, said, “The CMA is trying hardly to protect small investors in the market. With the introduction of this new policy, the market risk would be reduced further. Al-Jefri also predicted an upcoming gradual correction in the market.
Faisal ibn Jabber, trader in the stock market, said, “CMA’s decision came after the market witnessed a rapid increase in the share value of many weak-performing companies or that of companies which did not make any recent significant announcements.
