Riyadh-Saudi companies willing to become public holding firms have slowed down the process, following a drop in prices of new companies listed in local share markets dealings.
The forbearance of Saudi companies affected the region’s market. Ernst & Young latest statistics showed that initial underwriting volume declined 40% during the second quarter compared to the first quarter of the same year.
In a related matter, Saudi share market concluded the first week sessions with a slight drop and it closed at 6,212 points amid USD613.3 million (SAR2.3 billion) monetary liquidity, which is considered the least in five years.
Saudi Arabian Monetary Agency (SAMA) continued its positive movements to enhance performance of local insurance companies, knowing that SAMA handed over a statement of updates to Gulf Union Co-Operative Insurance Co. on Sunday.
Gulf Union Co-Operative Insurance Co. issued the statement on Tadawul revealing major points tackled by SAMA including: importance of acquiring a no objection certificate on some investors’ underwriting substantial shares in tradable rights and necessity of submitting a five-year plan that consists of elements triggered by SAMA statement.
These occurrences coincide with an imminent inauguration of SMEs secondary share market in 2017. Asharq Al-Awsat was informed that SMEs share trading will be available for public and private funds and for individual investors as well but via investment funds. This step aims to strengthen individual investors’ protection of the risk to get involved in emerging companies that still need some time to expand and grow.
For this, Tadawul held several workshops to introduce share markets that will be launched in 2017. Several topics were tackled such as determining the minimum market value (USD2.66 million i.e. SAR10 million) in addition to the new market requirements and features.
SAMA Controls Insurance Companies’ Performance
No comments:
Post a Comment