Bursa: Review on stocks for short-selling every six months

Bursa: Review on stocks for short-selling every six months
Business & Markets 2013
Written by Jason Tan of theedgemalaysia.com
Wednesday, 24 July 2013 15:12

KUALA LUMPUR (July 24): BURSA MALAYSIA BHD [] is scheduled to conduct reviews on stocks eligible for regulated short-selling every six months.

The stock exchange operator will review the list in June and December.

Bursa acting director for securities market Ong Li Lee said the number of such stocks will vary, and more stocks will be included as long as they meet the requirements.

Ong said large-cap stocks with huge transaction volume and free- float shares are among those considered for RSS.

“It’s part of our business plan to continuously improve products at the stock exchange.

“The widening of short-selling stocks will add to the vibrancy of the market.” Ong told reporters here today during an education and update session on RSS and securities borrowing and lending.

Bursa is lifting the cap on the number of stocks eligible for RSS in a move to lure more investor interest in such counters.

Last Monday (July 22), the regulator expanded the list of counters to 171, after limiting the number at 100 since it reintroduced RSS transactions in 2007.

The Malaysian stock market had grown by more than 130% over the last four years to US$481 billion (RM1.5 trillion) as at April this year.

Ong said the growth has offered an opportune time to lift the cap on RSS to increase market interest in such transactions.

According to Bursa statistics, short-selling transactions hit RM293 million in June this year from zero in March 2012. However, the transactions only accounted for 0.6% of total market value.

Trade value is anticipated to continue growing as the exchange introduces plans to attract greater market participation in short-selling, Bursa said.