Don’t be overjoyed that IDSS remains suspended
Investors of speculative stocks can sigh relief now that the Securities Commission (SC) and Bursa Malaysia have extended the temporary suspension of short-selling by another two months to 30 June.
The temporary suspension of short selling remains a short-term measure to provide stability and confidence in the Malaysian capital market, according to the market regulators.
“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 Covid-19 pandemic, as well as to mitigate any excessive speculative activities in the marketplace,” the SC and Bursa Malaysia said in a joint statement on 28 April.
Recall that both market regulators had imposed a temporary suspension on intraday short-selling (IDSS), regulated short-selling (RSS) as well as intraday short-selling by proprietary day traders from 23 March to 30 April to mitigate heightened volatility and global uncertainties stemming from the COVID-19 pandemic.