There is a triple whammy affecting global capital markets; the trade wars, the oil prices and the COVID-19 pandemic.
Recently, Bursa Malaysia and Securities Commission made certain decisions regarding short selling, margin financing rules and continuous trading. The rule changes and decisions are due to the desperate times that the investors, brokers and the Exchange are facing. After all, desperate times need desperate measures.
In a pronounced continuous downspin in the market, it is wise to stop short selling temporarily, (despite there being an uptick rule). Our market saw wild continuous downward pressure recently; at times our FBMKLCI index was down over 90 points during the day.