Saudi Arabia’s King Abdullah asked the stock market regulator to investigate trading violations even if they involve members of the royal family, Al Sharq reported on its website, citing a letter to the regulator.
An official at the Capital Market Authority declined to comment when contacted by Bloomberg News today.
The kingdom’s benchmark Tadawul All Share Index has surged 20 percent so far this year, a rally that has been driven by retail investors, according to ING Investment Management’s Yazan Abdeen, who helps oversee about $250 million as a fund manager in Dubai.
“Some believe that may imply inadequate trading behavior,” Abdeen said. “The letter is a confirmation that the CMA has regulatory power. Increased regulation from fraud is something the market has to evolve into.”
The benchmark stock index slipped 0.3 percent today to 7,697.70 at the 3:30 p.m. close in Riyadh, the lowest level since March 24. The measure yesterday lost 1.8 percent, the most since Aug. 20.