This is a good news for Malaysian short-term technical trader, if implemented, you can really "swing trading", swing up or swing down and not just 'up' like current (unlike the swing trader in the US market).
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This short selling was suggested by many fund manager years ago since 1998 market crash. Many remiser also suggested this in the last survey by Bursa Malaysia Co. This should be a win-win situation for all : more liquidity (translated into more active market).
By the way, this regulated short selling actually was once implemented many years ago on several selected counter but not really well received by retail investor. I guess, the investor was not well educated in this matter back then. Well, not now maybe.
What's in for you as the market player; you can participate in both 'bullish' market (go long) and 'bearish' (go short).
The bad news is 'speculative activities by sydincate' could be rampant. Even in the "go long only market", our Bursa Malaysia is well known for syndicate play (or insider play e.g Fountain) and I could just imagine what it will be if short selling is allowed. I believe so only some selected counters (blue chips?) and it will be a short list.
Anyway, the exchange will imposed many restriction and limition, same thing like as imposed to the bond market (last week's recent easing of short selling for goverment bond).
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Lets see how it develops.
