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​(Since the imposition of Movement Control Order (MCO) by Malaysian government beginning from 18 March 2020, public listed companies have postponed their general meetings while some have proceeded with virtual general meetings.)

15.05.2020

Is the stock market defying the COVID-19 gravity?

The current buying frenzy of stocks at a time when the world is still struggling to battle the COVID-19 pandemic is a little mind-boggling – or scary – to say the least.

The way corporate America is treating the COVID-19 economic devastation as a ‘non-event’ as evident by the upward spiralling of the benchmark Dow Jones Industrial Index (DJIA), the S&P 500 and NASDAQ Composite in recent times is nothing short of astonishing.

(Since the imposition of Movement Control Order (MCO) by Malaysian government beginning from 18 March 2020, public listed companies have postponed their general meetings while some have proceeded with virtual general meetings.)

08.05.2020

COVID-19 expedites the transition from physical to virtual AGMs

01.05.2020

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.

03.04.2020

Desperate Times Need Desperate Measures

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.

Short-selling

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.

27.03.2020

Perhaps not the time for bottom fishing yet

On Tuesday’s (24 March) overnight trading, the Dow Jones Industrial Average (DJIA) soared 11.4% to its best day percentage gain since March 1933 as the US Congress and the White House neared a deal to inject nearly US$2 trillion of aid into an economy ravaged by the COVID-19 pandemic. At the time of writing, a US$2 trillion stimulus package has been approved by the Senate to support the US economy.

Rather than rejoicing by treating this as a clear buy signal, investors should first ask themselves whether the technical rebound is sustainable or merely a temporary reprieve in a bear market.