Temporary suspension a short-term measure to provide stability and confidence in the capital market

The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd (Bursa Malaysia) have extended the temporary suspension of short-selling to 30 June 2020.

The temporary suspension, which began on 24 March 2020 was initially targeted to end on 30 April 2020. It was introduced by the SC and Bursa Malaysia, 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 (IDSS) and Regulated Short Selling (RSS), as well as intraday short selling by Proprietary Day Traders. The suspension does not however apply to Permitted Short Selling (PSS).

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

In a statement on 28 April, both the SC and Bursa Malaysia said it will continue to monitor developments affecting the securities market and evaluate the adequacy of existing measures to support an orderly market and to mitigate potential risks.