KUALA LUMPUR (April 28): The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd have extended the temporary suspension of short selling to June 30, 2020.

In a joint statement, the SC and Bursa said the temporary suspension, which began on March 24, was initially targeted to be ended on April 30.

It was introduced by the SC and Bursa as part of a slew of proactive measures to mitigate potential risks arising from heightened volatility and global uncertainties as a result of the Covid-19 pandemic.

It involves the suspension of intraday short selling and regulated short selling, as well as intraday short selling by proprietary day traders. The suspension does not, however, apply to permitted short selling.

The SC and Bursa said the extension of the temporary suspension will ensure that market management measures are still in place to manage risks within the prevailing uncertain and challenging environment amid the Covid-19 pandemic, as well as mitigate any excessive speculative activity in the marketplace.

“The temporary suspension of short selling remains a short-term measure to provide stability and confidence in the Malaysian capital market.

“Both the SC and Bursa Malaysia will continue to monitor developments affecting the securities market and evaluate the adequacy of existing measures to support an orderly market and mitigate potential risks,” they said.