THE Securities Commission (SC) and Bursa Malaysia Bhd have extended the suspension of short selling by two months to June 30.

The suspension, which took effect on March 24, was initially set to end on Thursday.

“The extension will ensure that market management measures are still in place, to manage risks within the prevailing uncertain and challenging environment amid the Covid-19 pandemic, as well as to mitigate excessive speculative activities in the marketplace,” said the regulators in a joint statement today.

The suspension was introduced by SC and Bursa as part of proactive measures to mitigate the potential risks arising from heightened volatility and global uncertainties as a result of the coronavirus.

It involves the suspension of intra-day and regulated short selling, as well as intra-day short selling by proprietary day traders. The suspension does not apply to permitted short selling.

“The suspension remains a short-term measure to provide stability and confidence in the Malaysian capital market,” said the statement.

“Both SC and Bursa will continue to monitor developments affecting the securities market, and evaluate the adequacy of existing measures to support an orderly market and mitigate potential risks.” – Bernama, April 28, 2020.