Suspension of short selling on Bursa Malaysia extended until year-end

Suspension of short selling on Bursa Malaysia extended until year-end
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KUALA LUMPUR (June 26): The temporary suspension of short selling on Bursa Malaysia, which was to end on June 30, has been further extended to Dec 31.

The temporary suspension of short selling was introduced by the Securities Commission (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.

The suspension began on March 24 and was extended on April 28, and subsequently targeted to end on June 30.

In a joint statement today, SC and Bursa said: “There will not be any change to the scope of the suspension, in that it applies to Intraday Short Selling (IDSS) and Regulated Short Selling (RSS), as well as intraday short selling by Proprietary Day Traders.

“Permitted Short Selling (PSS) is not affected by the temporary suspension of short selling, as PSS is necessary for market makers to market make the relevant securities such as exchange traded funds efficiently.”

SC and Bursa had previously stated that the temporary suspension of short selling is a short-term measure to provide stability and confidence in the Malaysian capital market.