PETALING JAYA: Short selling of shares on Bursa Malaysia has been suspended till April 30 to mitigate potential risks arising from heightened volatility and global uncertainties amid the Covid-19 pandemic outbreak.
This comes after the Securities Commission Malaysia (SC) and Bursa Malaysia assured last week that trading of shares will continue despite calls for suspension in the wake of a market sharp fall.
The regulators said in a joint statement that the suspension of short selling involves intraday short-selling (IDSS) and restricted short-selling (RSS), as well as intraday short-selling by proprietary day traders. However, the suspension does not apply to permitted short-selling (PSS).
There are 215 stocks on the approved list for RSS.
The SC and Bursa said they are closely monitoring ongoing developments at both the global and domestic fronts.
“We continue to observe trading activities in this exceptionally volatile global and market environment. We will assess the situation and consider the necessary additional precautionary measures, as appropriate, to support an orderly market,” said SC chairman Datuk Syed Zaid Albar.
Meanwhile, Bursa CEO Datuk Muhamad Umar Swift said this remains a short-term measure to provide stability and confidence.
“We remain committed to ensuring a conducive trading environment in our marketplace.”
The local bourse saw heavy sell-off again today, sending the KLCI down 43.4 points or 3.33% at 1,259.88 points. The ringgit also closed 1.5% lower at 4.4440 against the US dollar.
source https://www.thesundaily.my/business/short-selling-on-bursa-halted-till-next-month-CC2172554
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