MARKET BOOSTS

BURSA Malaysia Bhd’s move to allow intra-day short-selling of shares is a good start to attracting quality listings and increasing liquidity, say analysts. They also see more measures coming from the exchange operator.

BURSA Malaysia’s introduction of intra-day short-selling (IDSS) is just the beginning as analysts believe the stock exchange operator will introduce more measures to attract quality listings and boost liquidity.

The framework on IDSS is expected to be launched in the second quarter of this year.

The initiative follows the plans for a new trading link between stock markets in Malaysia and Singapore — a move that will help boost liquidity, lower trading costs and encourage cross-border investments.

MIDF Amanah Investment Bank Bhd research head Mohd Redza Abdul Rahman believes that Bursa Malaysia can come up with more ways to make the market more vibrant.

“One is to provide a host of quality names to list on the bourse. Another is marketing — to get as many investors to trade on our markets — and to provide the tools to cater for the various trading strategies,” he told NST Business.

Redza said IDSS was good for the market and investors as it would provide a more complete trading platform.

“IDSS will give more depth and provide liquidity to the platform and the end-game is to make the market more vibrant. This will attract more retail investors.”

Currently, there is a limited number of short-selling activities through regulated short-selling and proprietary day traders.

Stock market expert Nazarry Rosli said he expected more measures to be introduced to drive market vibrancy.

He said this would open the doors to sophisticated investors regardless of the market condition or sentiments.

“Before this, investors can only trade in a one-way market — buy first and sell later. The new initiative will create more liquidity in the market and provide opportunities for smart or professional investors and traders.”

Yesterday, the FTSE Bursa Malaysia KLCI extended its gains, closing 19.04 points higher at 1,857.32 points from Thursday’s close of 1,838.28 points, in line with regional bourses.

Gainers outpaced losers 824 to 193, with 288 counters unchanged, 587 untraded and 19 suspended.

Volume increased to 2.36 billion shares worth RM1.89 billion from 1.11 billion shares worth RM1.07 billion last Thursday.