Thursday 28 Mar 2024
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KUALA LUMPUR (March 19): The Malaysian Association of Asset Managers (MAAM) said today that it is opposed to calls for the suspension of shares trading.

The association, which represents most of the country's large asset management companies in an industry with total assets under management of about RM800 billion, said any move to suspend trading will only worsen market volatility.

"We believe in the fair and orderly functioning of the business change without interference, which can be construed as a form of capital control in such a tense global situation," it said in a statement.

"We believe any move to suspend trading does not address the underlying issues facing the country and the stock market, and will exacerbate unnecessary volatility and feed on current uncertainty," MAAM added.

The association drew examples from the past to argue its point, like how the Hong Kong Stock Exchange suspended shares trading at the height of the Asian Financial Crisis in 1997, which then saw the market slump 33% upon reopening four days later.

It also cited the example of the Philippines Stock Exchange, which sank 24% on opening today following a two-day suspension.

"Hence, MAAM strongly opposes the motion by certain industry players to suspend trading in Bursa Malaysia," it said.

MAAM's statement came following reports that certain quarters are calling for the suspension of Bursa Malaysia in view of the current volatility.

The Securities Commission (SC) and Bursa Malaysia, however, jointly issued a statement this afternoon to say that the trading of shares will continue as usual.

In the statement, the regulators said they will “maintain continuous trading and market operation to facilitate investors to manage their risks and opportunities during this period”.

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