April 9 (Bloomberg) -- 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% 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% 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%, the most since Aug. 20.