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Saudi’s Capital Market Authority lifts suspension on Mobily shares

It halted trading on Sunday pending the mobile firm's response to the preliminary findings of a panel investigating its restatement of over two years of earnings

DUBAI, Oct 12 (Reuters) – Saudi Arabia’s Capital Market Authority (CMA) lifted a one-day suspension on trading of Mobily’s shares, the stock market regulator said in a statement on Monday.

It halted trading on Sunday pending the mobile firm’s response to the preliminary findings of a panel investigating its restatement of over two years of earnings.

Mobily, part-owned by Abu Dhabi-listed Etisalat, announced later on Sunday that the CMA had rejected demands by some shareholders for compensation over the steep drop in the firm’s stock price.

The company restated 27 months of earnings to March 31, 2015, slashing its total profits over the period by nearly 1.76 billion riyals ($470 million).

Mobily first revealed there were errors in its financial statements on Nov. 3, 2014, since when its shares have fallen 63 percent.

(Reporting by Katie Paul; Editing by David French)