JEDDAH, 14 December 2006 — The Capital Market Authority (CMA), the Kingdom’s stock market regulator, yesterday fined an investor SR2.4 million for carrying out fraudulent transactions.
The CMA announced the measure through its website. 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.
According to the website, Al-Qahtani violated CMA’s rules and its executive bylaws, and committed deception and swindling. He was also ordered to pay back SR88.6 million he made from illegal trading. He has appealed against the CMA decision.
One expert, who wanted to remain anonymous, told Arab News that the measure taken by the CMA against Al-Qahtani would strengthen stock market credibility. But since it seems there are still more violators in the market, the CMA has to take further swift action against them to strengthen the market and bring back investor confidence.
Qahtani’s is the third case of market manipulation to be reported this year. In April, the CMA has suspended two dealers for manipulating stocks of Al-Mawashi Al-Mukairish United Co., Alujain and Saudi Electricity Co. (SEC).
Meanwhile, the Tadawul All-Shares Index rose 113.36 points to 7,950.42 yesterday. The Saudi stock market will remain closed after the end of trading on Dec. 27 until Jan. 5, 2007 for Eid Al-Adha holidays. It will reopen on Jan. 6.
