By: Mohamed Idris
Riyadh – Mubasher: Technical analysts said that the Saudi Capital Market Authority’s (CMA) decision to suspend trading on the telecom sector was surprising and needed preparation so that the companies would have time to follow it.
CMA announced suspending the four listed telecom companies starting from Sunday, 2 October until the firms disclose the financial impact of the decision over extending licenses.
Such announcements reveal a state of confusion as the suspension was announced before 28 minutes of trading and there was no prior schedule for it, Ali Al-Zahrani, acting asset manager at Musharaka Capital Company told Mubasher.
The decision will open the telecom market as per the competition standards, which is considered fair for the huge profits achieved by the companies, some analysts said.
It is worth noting that Mobily was licensed 20-25 years ago, which means that half of its period has ended, while Saudi Telecom Company (STC) has no license.
Translated by: Sara Ghali
