The Covid-19 outbreak has exacerbated the slowdown in the global economy, which in turn has caused turmoil in stock markets worldwide The broker said that suspending trading in the stock market is not the solution as it would worsen the situation and deter foreign investors.
KUALA LUMPUR: Some brokers are calling for a suspension of short selling because there are loopholes on Bursa Malaysia’s updated regulations on the matter, as it is a measure that would bring about more stability to the stock market and reduce distortion to prices.
A seasoned broker who has been in the industry for more than 30 years said that although Bursa Malaysia has introduced the Uptick Rule since Tuesday, there were loopholes that allowed for short selling to happen.
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