No decision to change fluctuation limits, says CMA Chairman

Mohammed Elkuwaiz, Chairman of Capital Market Authority

Fluctuation limits are applicable in most global markets, and it is difficult to open the applicable fluctuation limits, Mohammed Elkuwaiz, Chairman of the Capital Market Authority (CMA), said in an interview with Rotana Khalejia.  

Elkuwaiz stressed that there is no decision to change fluctuation limits, and the matter is subject to evaluation.  

The market and CMA commissions are constantly under evaluation, with the aim of positioning the Saudi market as a highly competitive market, Elkuwaiz added.   

He noted that the Saudi market began to reach high-efficiency levels, pointing to its strong interaction with corporate disclosures according to research conducted in cooperation with the CMA.  

Read also: Interference with offer prices limits IPOs; capital hikes decided by shareholders: Elkuwaiz

The Saudi market is mature as it applies mechanisms that are very similar to most peers.  

Elkuwaiz indicated that speculators underperformed funds by nearly 80%.  

In response to a question about the existence of hidden purchase orders, the CMA Chairman stated that this is applicable in most markets.