Saudi stocks rebound after initial drop on corruption probe

FILE PHOTO: Investors talk with each other as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia June 29, 2016. REUTERS/Faisal Al Nasser

DUBAI (Reuters) - The Saudi stock market rebounded into positive territory on Sunday after initially dropping sharply in response to a corruption inquiry that led to a string of detentions of prominent political and business figures.

The stock index .TASI was up 0.02 percent an hour before the close, after falling 2.2 percent at one stage.

Some investors worry the investigation could force people implicated to sell equity holdings. But many think the purge will remove opposition to Crown Prince Mohammed bin Salman, helping him accelerate economic reforms such as privatization and big development projects.

Reporting by Andrew Torchia; editing by Mark Heinrich