Saudi Arabian corruption probe takes toll on markets
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After a decree was issued that would consolidate the power of Crown Prince Mohammed bin Salman and crack down on corruption, Saudi Arabia’s stock slumped in early trading on Sunday.
The plan was followed shortly by a cabinet reshuffle and a string of detentions of prominent figures. 
Among those under arrest is Prince Alwaleed bin Talal, who owns Kingdom Holding, an investment firm that hold stakes in major international firms such as Citigroup and Twitter, says reports. Its shares plunged 9.9 percent despite swinging to a profit in the third quarter, the firm stated, hours after news of its chairman's detention.
The Saudi equities index .TASI was down 1.6 percent after three and a half hours trade as declining stocks overwhelmed advancers by 155 to 15. 
Shares in National Industrialization Co (Tasnee), in which Kingdom holds a 6.2-percent stake sank 9.9 percent and Banque Saudi Fransi, in which Kingdom bought a 16.2-percent stake in September, fell 2 percent.
The anti-corruption committee was formed by royal decree and is headed by Crown Prince Mohammed bin Salman./Reuters Photo.

The anti-corruption committee was formed by royal decree and is headed by Crown Prince Mohammed bin Salman./Reuters Photo.

Eleven princes, four current ministers and tens of former ministers, as well as several senior businessmen have been detained under the probe, unveiled late Saturday, according to Saudi-owned Al Arabiya television.
Analysts said the news worried the stock market because businessmen implicated in the probe might end up having to sell some of their equity holdings, which could temporarily at least weaken prices. New investment in the market by the businessmen could shrink.
In an attempt to soothe investors, Saudi Arabia’s Finance Ministry said on Sunday that the kingdom’s decision to set up an anti-corruption committee and detain prominent figures enhanced confidence in the rule of law.
The decisions preserve Saudi Arabia’s investment climate, the Saudi-owned television channel said.
Saudi King Salman also appointed two new ministers on Saturday to key security and economic posts, removing one of the royal family’s most prominent members as head of the National Guard.
The latest campaign may strike up anxiety among traders in the gulf region, apparently denting market confidence in Dubai, whose stock market fell 0.9 percent. Qatar’s stock index .QSI dropped 0.6 percent in a broad-based decline, with nine of the 10 most active stocks weaker.
Source(s): Reuters