Posted by tkl88 > 2019-01-03 07:20 | Report Abuse

Short selling enhances liquidity, but also volatility Chester Tay The Edge Financial Daily
January 02, 2019 09:59 am

https://www.theedgemarkets.com/article/short-selling-enhances-liquidity-also-volatility

Posted by tkl88 > 2019-01-03 07:28 | Report Abuse

January 02, 2019 09:59 am

KUALA LUMPUR: Intra-day short selling (IDSS) was reintroduced in April last year with the aim of enhancing liquidity in the equities market, but the mechanism has a major side effect — it amplifies market volatility when sentiment is negative.

This drawback was underscored a month later in May last year after the Barisan Nasional (BN)-led government was dumped in the 14th general election (GE14). With the new untested Pakatan Harapan coalition at the reins after 60 years of uninterrupted BN rule, the markets were bound to be roiled.

And they were. When the markets opened on May 14, the stock exchange was awash in a sea of red, with companies perceived to be aligned to the BN administration particularly battered.

Government services provider MyEG Services Bhd (MyEG), construction company George Kent (Malaysia) Bhd, Destini Bhd, Malton Bhd, Petra Energy Bhd and Gamuda Bhd bore the brunt of the selldown as investors bailed out in panic. Such was the selling pressure, with MyEG and George Kent hitting limit down on at least two trading sessions.

Under the IDSS rule, proprietary day trading (PDT) and IDSS are suspended when a counter fluctuates more than 15 sen or 15% from its last closing price.

In all, the Bursa Malaysia issued a total of 36 suspensions in May last year, underscoring the uncertainty and capriciousness of the market post-GE14.

But by June 2018, some measure of calm had returned, and the number of suspensions eased to five for June and July, respectively.

MIDF Amanah Investment Bank Bhd head of research Mohd Redza Abdul Rahman told The Edge Financial Daily that even though overzealous short sellers might push the market lower, Bursa Malaysia’s PDT and IDSS suspensions help prevent the overreaction from worsening the share price of affected counters.

In recent months, owing to external issues including the US-China trade tensions and the US Federal Reserve interest rate hikes, as well as the weak domestic economy and feeble corporate earnings, the last quarter of 2018 also saw about 10 PDT and IDSS suspensions per month.

“There were more short selling suspensions towards year end due to the abruptness of share price declines. If a share falls gradually, it won’t hit the dynamic limit.

“But lately, the price drop has been rather abrupt, owing to the confluence of quarterly results that were below expectations, as well as negative market sentiment driven by external and domestic events,” Mohd Redza said.

Rakuten Trade Sdn Bhd vice-president of research Vincent Lau is not entirely surprised.

“With the recent volatility and market weakness it is not surprising to see many stocks being triggered with the suspension of PDT and IDSS when their prices drop more than 15 sen or 15%.

“Without the IDSS suspension mechanism, short selling will exacerbate the fall in a volatile market,” he added.

Still, there are market players who believe that Malaysia is not ready for IDSS as its markets are not sufficiently liquid.

Areca Capital Sdn Bhd chief executive officer (CEO) Danny Wong opines that as the Malaysian capital market is less liquid, it is not healthy for Bursa to implement IDSS.

“It is normal during a bear market for short selling to increase as it is one of many investment strategies. But personally I do not agree with short selling in Malaysia because our market is not as liquid as other developed markets,” he said over the phone.

“It is not healthy in the sense that investors are selling what they don’t have, and it could escalate the market downturn and volatility, which would [then] affect investors who do not short sell.

“Normal investors have less [of an] appetite to sell below their investment’s intrinsic value, but for short sellers, they are motivated to pressure the share price for the sake of their profit.”

Phillip Capital Management Sdn Bhd chief investment officer Ang Kok Heng is of the view that IDSS would have lesser impact if Malaysia had a deep enough market.

“Let’s say a person shorts 10 million shares of a counter, it can be done in half an hour, and immediately the share price drops 5%. But when you buy back the 10 million shares, you may need two hours, and the counter may not recover the 5% it lost.”

Prime Minister Tun Dr Mahathir Mohamad is also not a fan of short selling. In his first tenure as prime minister, he banned the shorting of shares during the 1998 Asian financial crisis to help curb the outflow of capital.

In 2006, under then prime minister Tun Abdullah Ahmad Badawi, the ban was partially lifted, but regulated short selling was only permitted for licensed proprietary traders on Bursa.

In reintroducing IDSS in April 2018, Bursa CEO Datuk Seri Tajuddin Atan said the initiative was part of the exchange’s strategy to boost market liquidity and to further improve flexibility for market participants to refine their trading and risk management strategies.

Posted by tkl88 > 2019-01-03 07:29 | Report Abuse

As at press time, Bursa Malaysiadid not respond to The Edge Financial Daily’s queries for this article.

MIDF’s Mohd Redza is advising investors who intend to take advantage of the current bear market to make quick profit through IDSS, to pay close attention to market movements.

“Yes, there are opportunities to make money by short selling, but one needs to pay very close attention to market movements. There are risks as well. Should the market turn the opposite way, investors would need to close their position by buying at a higher price, hence incurring losses,” he warned.

Posted by tkl88 > 2019-01-03 07:36 | Report Abuse

=>Prime Minister Tun Dr Mahathir Mohamad is also not a fan of short selling. In his first tenure as prime minister, he banned the shorting of shares during the 1998 Asian financial crisis to help curb the outflow of capital.

=>here are risks as well. Should the market turn the opposite way, investors would need to close their position by buying at a higher price, hence incurring losses,” he warned.

More & more analysts warned on Short Selling activities...
It's time to spike up liao !

Posted by Willy99 > 2019-01-03 09:26 | Report Abuse

At least tkl88 is posting some coherent information. Darth keeps going on like a broken record, without any value add to this discussion.

Posted by Vivoforever1 > 2019-01-04 03:44 | Report Abuse

Willy99 you have my support.

Posted by Willy99 > 2019-01-04 10:34 | Report Abuse

Vivoforever1 cheers mate

Posted by JuliusCeasar > 2019-01-04 11:29 | Report Abuse

Above going South to 0.0015 cent

Posted by tkl88 > 2019-01-04 12:15 | Report Abuse

Yesterday KUB was jump up more than +60%
Today was DAMANSARA REALTY BHD (3484) turn to jump up +60%
Now Damansara Realty was at 0.375 (+0.145)(+63%)

Tomorrow will it be Vivocom's turn to suddenly jump up +60%, who know ?

Posted by tkl88 > 2019-01-04 12:29 | Report Abuse

www.thestar.com.my/business/business-news/2019/01/04/china-and-us-to-hold-trade-talks-in-beijing-on-jan-7-8/

China and US to hold trade talks in Beijing on Jan 7-8
MARKETS Friday, 4 Jan 2019 11:28 AM MYT

BEIJING: China and the United States will hold vice ministerial level trade talks in Beijing on Jan. 7-8, as the two sides look to end a dispute that is inflicting increasing pain on both economies and roiling global financial markets.

The two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars worth of goods and stoking fears of a global economic slowdown.

Posted by Darth > 2019-01-05 01:18 | Report Abuse

Ha. Ha. Ha. I like the word broken record!
But for the record, what happened to Vivocom from 2016-2018 when market was peaking but share price dropping?
So, isn't market when up was good for Vivocom?
So many kena Con!

Posted by Darth > 2019-01-05 01:23 | Report Abuse

So many Naive people trying to buy time for the last 2 years hoping price will reverse and trying to post being positive without sense!
Yes. This is possible if only the company is transparent in doing their business.

Posted by Darth > 2019-01-05 01:28 | Report Abuse

Hmmmm. What has Dow Jones, KLSE or all the World indicies goes up has any bearing in Vivocom price to go up?
This company already had the last straw getting Rumah Prima projects.
What else have they build up in their order books moving forward as a construction company after that?
So, how price going to move up?

Posted by Darth > 2019-01-05 01:33 | Report Abuse

Ok. Just say ECRL goes on that doesn't mean Vivocom will get the job.
What has Vivocom to show in their order books today that they're a serious player in the construction industry?
Where are the Vivocom Directors coming out addressing their shareholders till today if have confidence in their company?

Posted by Darth > 2019-01-05 01:53 | Report Abuse

Anyway. Not many people in Bursa is bothered about Vivocom today.
Too many one day shows going down till 0.02 (maybe 0.015 in the making). Who
is? EPF?
If you'll whom are supporting this company posting without sense over here,please provide something concrete how and where Vivocom as a company will be able to move forward in 2019!

Posted by Darth > 2019-01-05 02:01 | Report Abuse

Stop posting what World Market is going up, Oil price going up or even what Malaysia is going on with Big projects.

Posted by Darth > 2019-01-05 02:04 | Report Abuse

Seriously, I have people over here posting about 'Bargain Hunting' by research house during a down turn.
I just want to ask these Naive people, how does this apply to a stock like Vivocom?

Posted by tkl88 > 2019-01-05 02:15 | Report Abuse

Dow now at 23,498.38 (+812.16) (+3.58%)

Posted by tkl88 > 2019-01-05 08:31 | Report Abuse

https://www.google.com/amp/s/amp.cnn.com/cnn/2019/01/04/investing/dow-stock-market-today/index.html

Dow surges 747 points, pushed higher by Fed chairman's comments and strong jobs report
By Chris Isidore, CNN Business
Updated 4:43 PM EST, Fri January 04, 2019

Posted by tkl88 > 2019-01-05 08:45 | Report Abuse

Stocks roared back Friday after investors received three belated New Year's presents.

The job market is still robust.
Federal Reserve Chairman Jerome Powell said the Fed will be flexible in its plan to hike interest rates.
=>China took action to stimulate its slowing economy !!!

Posted by zack2456 > 2019-01-07 07:18 | Report Abuse

Today fly

Posted by 8888_ > 2019-01-07 12:09 | Report Abuse

ECRL on?

Posted by Wong Kah Wei > 2019-01-07 13:53 | Report Abuse

Joker,

Posted by JuliusCeasar > 2019-01-07 15:14 | Report Abuse

Cannot see any light.

Posted by Darth > 2019-01-07 15:55 | Report Abuse

Really bunch of Jokers here promoting this counter.
Worst still got supporters for them!
When Dow up, come out to promote, when down go missing!
End of the day up or down, no effect on Vivocom.
So, what's the coherent information is this tkl88 feeding?

Posted by Darth > 2019-01-07 15:57 | Report Abuse

Ha. Ha. Ha.
This counter is going nowhere until something good and solid is to happen.

Posted by Darth > 2019-01-07 16:03 | Report Abuse

With 5B shares. Simply cannot fly suddenly.
Most of it is with the Director Shark.
Let them play.
Wait for the money to run out and see what exercise they want to come up with.
This company got many options...
PP, Bonus issues, RI with free Warrants,

Posted by Darth > 2019-01-07 16:07 | Report Abuse

Don't forget. They can start a new game with share consolidation!
So, plenty of exciting moments for Vivocom.
Wait and see game.
If all these doesn't happen than wait for it to close shop!

Posted by Darth > 2019-01-07 16:39 | Report Abuse

This company through out their listing has played around siphoning money out from Retailers!
Where had they improved moving forward towards the Main Board till today?
Plenty of news without substance.
So, where are they today?

Posted by Darth > 2019-01-07 16:41 | Report Abuse

The Company, Vivocom is most Welcome to close shop!
No need to trap more new Retailers to buy because cheap.

Posted by Darth > 2019-01-07 16:45 | Report Abuse

No more Rumah Prima projects (one off show where certain individuals profited getting the projects) but not the shareholders of the company.

Posted by Darth > 2019-01-07 16:49 | Report Abuse

Before closing down, only one thing.
MACC! Go Catch Vivocom Directors!

Posted by Darth > 2019-01-07 16:53 | Report Abuse

Facts.
This company was only involved with Telco towers (main) and aluminum finish production for the construction industry.
How the Hell did they get the subcontracting to build Rumah Prima?

Posted by Darth > 2019-01-07 17:00 | Report Abuse

Where was THIS company in the 1st place had the experties to do construction?
So. It was all about corruption I guess!
Get projects from sub-con, pay money.
Than sub sub-con again to a proper construction company to build.
End of the day, The Rumah Prima for the Middle Income group price gets inflated!

Posted by Darth > 2019-01-07 17:07 | Report Abuse

Today. Rumah Prima for the Middle Income group is selling @ 200k-400k.
If this group can sub-sub-sub con making profits.
Than please emagine what the actual price is supposed to be!

Posted by Darth > 2019-01-07 17:14 | Report Abuse

So. VIVOCOM needs to be investigated?

Posted by Darth > 2019-01-07 17:18 | Report Abuse

Open Topic @ 0.02!

Posted by sldinvest4320 > 2019-01-08 15:43 | Report Abuse

Tq @Darth. You have forwarned enough the greedy and not well informed retailers especially the newbies not to get easily con wth all the hyped and promotions by the unscrupulous big sharks. Totally agree that this counter is con.

Posted by tkl88 > 2019-01-08 16:37 | Report Abuse

Wow, today really super bullish...
All Ah Ju Ah Kao Ah Mao stocks all spike up...
Really like what i said last year, once entering 2019 and onward,
our economy will started to become prosperous !
Now my BJcorp already at 0.32 (+0.03) (+10.36%)
Vivo sure will be the next to spike up...
Huat ah! Heng ah! Ong ah!

Posted by rogers123 > 2019-01-08 23:53 | Report Abuse

tkl88 Wow, today really super bullish...
All Ah Ju Ah Kao Ah Mao stocks all spike up...
Really like what i said last year, once entering 2019 and onward,
our economy will started to become prosperous !
Now my BJcorp already at 0.32 (+0.03) (+10.36%)
Vivo sure will be the next to spike up...
Huat ah! Heng ah! Ong ah!
08/01/2019 16:37 <-- This vivocom is a conman stock.

Posted by Johor > 2019-01-08 23:53 |

Post removed.Why?

Posted by tkl88 > 2019-01-09 09:20 | Report Abuse

Wow, today BPURI's turn to spike up...
Now at 0.255 (+0.02) (+8.5%)
From it's record low of 0.18 to 0.255 (+0.075)
already up +41.67%
Vivo sure will be the next to spike up...
Huat ah! Heng ah! Ong ah!

Posted by Sales > 2019-01-09 10:56 | Report Abuse

Vivo makes a lot of people jumped to the sea already. Darth gave a lot of bad comments. Beware!!!

Posted by Sales > 2019-01-09 10:58 | Report Abuse

Thank you Darth for all the comments. Darth Happy Chinese New Year to you and i3 forum. Huat ah!!!!

Posted by tkl88 > 2019-01-09 11:22 | Report Abuse

All asian bourses spike up, US - China trade talk ended with a deal which both happy ?

Hang Seng => 26,486.26 (+610.81) (2.36%)
Nikkei => 20,455.74 (+251.70) (1.25%)
Shanghai=> 2,564.79 (+38.33) (1.52%)
Taiwan => 9,725.56 (+161.96) (1.69%)
Korea => 2,062.73 (+37.46) (+1.85%)
Singapore => 3,152.95 (+30.01) (+0.96%)
KLSE index=> 1,681.97 (+9.21) (+0.55%)

Posted by Undi_PKR > 2019-01-09 12:32 | Report Abuse

PKR want more affordable houses. Should give some projects(Rumah Mampu Milik) to Vivo.

Posted by Darth > 2019-01-09 15:06 | Report Abuse

Sales Hi. Happy New Year too you too.
All the best for 2019.

Posted by tkl88 > 2019-01-09 18:21 | Report Abuse

As at 6.20pm, Oil price spike up, U.S.-China trade talks was successful ?
US Nymex at => $51.05 (+1.27) (+2.55%)
Brent at => $59.98 (+1.26) (+2.15%)

Posted by 100000024310431 > 2019-01-10 14:53 | Report Abuse

vivocon not move!!!

Posted by Darth > 2019-01-10 15:00 | Report Abuse

Vivocom is only wait and see game.
3/6/9 months or 1/2/3 years.
When the funds run out they'll come knocking if not close shop.