Posted by Flintstones > 2018-05-28 21:15 | Report Abuse

This intervention is stupid. IDSS is a flawed system because most of the counters listed in Bursa are highly illiquid. These days, a poor quarterly result is a guaranteed > 10% drop at the open because there are no buyers available.

The mind boggling thing about the whole picture is the harvard MBAs working at Bursa Malaysia decided to suspend IDSS when things get ugly. So what happened afterwards is panic short covering ensues. Why panic short covering? Because without liquidity, THERE WILL BE NO BUYERS BUYING AT A LOWER PRICE AND HENCE THE SHARE PRICE WILL NOT GO DOWN ANYMORE AND HENCE THE WHOLE SHORT TRADE HAS PEAKED.

I am running a trading strategy that involves monitoring IDSS suspension real time. Once Bursa issue a suspension, you buy the hell out of the stock because the shorts will panic buy at a higher price. This is one of the reason why Power Root is so volatile today and ended up at a high despite posing a loss quarter.

Posted by gohkimhock > 2018-05-28 21:31 | Report Abuse

They were in a haste to reintroduce short selling the moment Najib allowed it. It was without proper study. The previous short selling during the 90s was way better than the current one.

Posted by gohkimhock > 2018-05-28 21:33 | Report Abuse

We do not know who is Bursa trying to protect. Or is some GLCs being stuck inside like EPF Tabung Haji LTAT etc..?

Posted by limch > 2018-05-29 03:46 | Report Abuse

Why IDSS suspension valid for Poweroot only? Should apply to all counters if Bursa is fair.

Posted by limch > 2018-05-29 03:47 | Report Abuse

Change govn to PH no meaning if Bursa still rule by same people. People vote for PH bec not satisfied with Bursa not the govn only.