JEDDAH: The Capital Market Authority (CMA), the Saudi stock market regulator, has imposed a fine of SR50,000 on the Saudi Indian Company for Cooperative Insurance for violating disclosure regulations. According to information available on Tadawul website, the company obtained a permit from Saudi Arabian Monetary Agency (SAMA) on July 9 and did not announce it until after the closure of the market on July 12.
The CMA is trying hard and taking actions against violators to strengthen the market's stability and protect the rights of all stock market dealers.
Earlier, the CMA imposed a penalty of SR100,000 on Aldrees Petroleum and Transport Services Company for leaking confidential information.
In July this year, the CMA revoked the license of Naeem Investment Company for violating the Capital Market Law and its regulations and deliberately giving false and misleading information to the CMA during the period of granting the license.
Last year, the CMA 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.
Osama ibn Muhammad Al-Naeem was found guilty of violating its regulations while dealing with the shares of Ahmed H. Fitaihi Co. and Al-Ahsa Development Co. in 2006. 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.
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 stock market reacted positively yesterday. The Tadawul All-Share Index (TASI) closed 54.17 points higher at 8,411.40.
Yesterday, Astra Industrial Group made a debut at the stock market. The SR42 Astra shares opened at SR47 and reached as high as SR48.50 and low of SR46 during the trading before closing at SR47. Over SR1.30 billion worth of Astra shares changed hands yesterday in total market turnover of SR4.67 billion. Astra shares gained 11.9 percent on the first day of trading.
Saudi Arabia Refineries Co. was the top gainer yesterday as its shares jumped 9.94 percent to SR196.25.
Saudi Basic Industries Corp. (SABIC) and Al-Rajhi Bank's shares closed 0.62 percent higher at SR120.25 and SR81 respectively.
Upward movement
For the second successive trading session this week, the BMG Saudi Index sustained its upward movement, increasing by 0.7 percent yesterday to reach at 452.67 points. However, the total turnover declined by 34.4 percent to SR1.4 billion ($377 million) versus SR2.2 billion ($574 million) registered on Sunday.
All of the five sectors have witnessed an upward trend. The telecommunication sector increased by 1.5 percent, the services sector by 1.4 percent, the banking sector by 0.6 percent, the industrial sector by 0.4 percent, and the insurance sector increased by 0.3 percent.
Seventeen shares went up, while eight went down, and five stood still. The best performer was Makkah Construction & Development Co. ascending by 3.4 percent to SR38.25. The worst performer was National Metal Manufacturing and Casting Co., falling by 5.5 percent to SR69.
By Khalil Hanware
© Arab News 2008
