Muhammad Al-Abdullah Okaz/Saudi Gazette JEDDAH — Stock market traders and investors have welcomed the directives of King Abdullah, Custodian of the Two Holy Mosques, to the chairman of the Capital Market Authority (CMA), urging a crackdown on illegal dealings and wild speculation on the local bourse. Dr. Ehsan Bohaleeqa, an economic expert, said the directives are aimed at transparency and justice. "The CMA took a step in the right direction when it suspended companies that had not submitted their financial statements. This is proof that no one is above the law and anyone who wants to enter the market for illegal purposes should think twice." Dr. Naif Al-Shareef, a commerce law professor at King Abdul Aziz University, said the directives ensure everyone is equal before the law. King Abdullah is aware of his responsibility before Allah the Almighty and citizens, he added. "The enforcement of any stock market's laws and regulations require transparency and severe penalties for violators. I call on the CMA to allow shareholders to see the names of all violators." Dr. Khalid Al-Harthi, president of Arak Center for Studies and Consultations, said the directives are aimed at reforming the market. "King Abdullah wants transparency to prevail and prevent any type of manipulation of the market. This is to prevent a reoccurrence of the 2006 crisis which caused a great deal of suffering for many citizens." The CMA should perform its monitoring duties and prevent any type of violation that might affect citizens, Al-Harthi added. He said the CMA must also educate citizens about proper investment practices. Dr. Fadhol Al-Bo'ainain, an economic expert, reiterated the importance of having an independent, transparent and fair law that is applied to all traders. The success of any nation depends on achieving justice for all, he pointed out. King Abdullah's letter will ensure that justice prevails in the market, he said. Al-Bo'ainain cited three companies which the CMA has suspended. "This shows that no one is above the law and any violator or manipulator will have to face the consequences of their actions." He said trading was disrupted two days ago when stocks skyrocketed then slumped later. "King Abdullah wants to put an end to this manipulation and instability, thus protecting small investors and traders against the consequences of such actions." Hussain Al-Khatir, a financial analyst, concurred and said that there will be panic once the directives have been implemented. This is due to the fluctuations that took place two days ago. "Positive results will be felt by traders in the next six months." Al-Khatir called on the CMA chairman to be decisive in the current period because the market might see a period where share prices fluctuate. Moreover, the brokers and speculators involved in illegal practices will stop trading and will look for loopholes, he warned. The Saudi bourse declined for a fifth session Tuesday, with the benchmark Tadawul All Share Index losing 1.89 percent to close at 7,551.88 points.
