The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) have extended the temporary suspension of short-selling to June 30.
The temporary suspension which began on March 20 was initially targeted to end on April 30.
The temporary suspension was introduced by both the commission and the bourse as part of proactive measures to mitigate potential risks arising from the uncertainties caused by the Covid-19 outbreak.
“It involves the suspension of Intraday Short Selling (IDSS) and Regulated Short Selling (RSS), as well as intraday short selling by Proprietary Day Traders,” said both SC and Bursa in a joint statement.
The extension of the temporary suspension will ensure that market management measures are still in place in order to manage risks within the prevailing uncertain and challenging environment amid the pandemic.
The move by both SC and Bursa still remains as a short-term measure to provide stability and confidence in the Malaysian capital market.
Developments affecting the securities market will be continuously monitored.