KUALA LUMPUR (Feb 2): Bursa Malaysia Bhd has no plans on banning regulated quick promoting (RSS) once more, in keeping with the native bourse’s chief government officer (CEO) Datuk Muhamad Umar Swift.
Muhamad Umar identified that the Malaysian market is totally different from the US market with regards to RSS, as there’s a most degree of 4% of a specific firm’s web quick place.
“So with this in place, what we’re seeing is that it’s effectively managed and we aren’t banning RSS at this time limit… as a result of it’s performing as it’s [supposed] to. RSS supplies liquidity,” the CEO mentioned at a briefing following the discharge of the inventory alternate’s outcomes for the monetary yr ended Dec 31, 2020 (FY20).
He clarified that the social media-induced quick promoting seen with GameStop shares within the US can’t occur right here, provided that the restrict for brief promoting in Malaysia is at 4%. It was reported that 138% of GameStop shares that have been accessible for buying and selling have been bought quick, which Muhamad Umar famous it as a singular collection of occasions that allowed for a brief squeeze.
“I feel what we have to perceive about GameStop is a singular collection of circumstances, and we prefer to see all buyers making knowledgeable choices. There is no such thing as a improper or proper, however make your personal choice,” mentioned Muhamad Swift.
When queried on whether or not the native bourse would carry its ban on intraday quick promoting (IDSS) and intraday quick promoting by proprietary day buying and selling (PDT Brief Promoting), Muhamad Umar mentioned the native bourse is taking it “step-by-step” and there will probably be a session with the Securities Fee Malaysia (SC), noting that the volatility that results in the ban has been managed.
The ban on IDSS and PDT Brief Promoting is presently set to run out on Feb 28.
The ban on IDSS and PDT Brief Promoting alongside the preliminary ban on RSS was put in place in March final yr by Bursa Malaysia and SC.
The ban on RSS was lifted on Jan 1.
“We wish a good and orderly market, which is vibrant. Our key concern is at all times [whether] buyers make knowledgeable choices. There may be freedom of speech, however one needs to be conscious of not offering funding recommendation,” Muhamad Umar acknowledged.
On the time of writing, shares in Bursa Malaysia have been up 0.11% or one sen at RM9.38, translating right into a market capitalisation of RM7.6 billion. It noticed 7.09 million shares executed.