whizzing pilfer: Saudi Arabia allows rights trade on stock market

Sunday, November 11, 2012

JEDDAH, Saudi Arabia, Nov 11 (Reuters) - Saudi Arabia's

Capital Market Authority is allowing subscription rights for

share offers to be listed and traded on the Saudi stock market,

as it modernises the market in preparation to permit the entry

of foreign investors.

"This framework aims to add further protection and

flexibility to those investors that do not have the intention to

subscribe to their entitlements," the regulator said in a

statement announcing the initiative on Sunday.

Abdulhamid abu Dahesh, a Saudi financial advisor, said the

new framework was similar to those in developed European stock

markets, and was a step towards trading practices in advanced

financial systems.

Saudi Arabia has been making preparations to open its stock

market, the Arab world's largest, to direct investment by

foreign institutions but has not yet announced a date for the

reform, apparently because it is concerned about the possibility

of destabilising the market.

(Reporting by Asma Alsharif; Editing by Andrew Torchia)

whizzing pilfer