Recent announcement by SC and Bursa Malaysia launching IntraDay Short Selling (IDSS), many investors and traders may be interest to know more about IDSS. However, no idea where to start off or find out more.
Before we go into the details of Malaysia IDSS, lets run through some basic explanation about short selling for those who do not understand it.
What is Short Selling
Short selling is where you have a view that a certain financial instrument price will go down and you sell it at the current high price first then buy back at the low price in the future.
The profit is measure by the selling price at high side - the buy back price = profit.
A layman example :
You run a business of selling coca cola, you sell your coca cola at RM 2.50 by taking stocks from your coca cola supplier first at a cost price of RM 1.
You sell your coca cola to your customer first at RM 2.50. End of the month you pay your supplier at RM 1. So you make profit from the difference.
However, some market offer different type of short selling.
Examples,
1) some have no terms, take the coca cola first and pay the invoice later. Which means, you borrow the coca cola from the supplier first then you pay them back in the future.
(NORMAL SHORT SELLING)
2) you don't have any coca cola in hand. You received an order from your customer to buy 10 cartons of coca cola. You take the payment from your customer and you place an order with your supplier.
(NAKED SHORT SELLING)
What is IntraDay Short Selling (IDSS)
Currently Bursa Malaysia is offering intra-day short selling. Which means you get to short sell a list of counters approved by Bursa Malaysia within a day (See below for the list of stocks available for short selling). At the moment there are only 280 counters are allowed for short selling.
Your trading account will not have access to IDSS by default. Traders & investors have to request with your broker and require to sign a Securities Borrowing And Lending Agreement (SBL), Request Form & Risk Disclosure Agreement by the broker.
Examples: You enter a short selling position on BERJAYA in the morning on Monday, 16th of April 2018, without having any BERJAYA shares. Before the end of trading days, you are required to close the short position before the end of trading hours on 16th April 2018.
Here's something every short selling traders have to take note, try to close the short position by 4:45PM. Reason is because the market will enter into matching time(Pre-closing), if you have not close the position before 4:45 PM, you might not able to buy back your short selling shares by 4:59PM, because after 4:50 PM to 4:59PM is trading at last, all stocks are to be traded at last price.
What If You Failed To Closed The Short Position Within the Day?
If fail to closed the position, you will have to borrow shares from the license shares lender approved by Bursa Malaysia (or transfer from your other CDS account to cover the short position or from your IMMEDIATE family members CDS account only), such borrowings incur charges and interest. Charges (transfer charges of RM 10.60 is fixed charges by Bursa Malaysia) and interest vary from brokers and the agreed price to borrow the said shares are subject to agreed price too, therefore traders have to take note on the charges and make sure it doesn’t affect your profitability. Confirmation of borrowing must be done on 5pm and by 6pm.
However, the borrowing shares are subjected to availability. If your existing broker do not have enough of shares to lend to you, they are required to request from other brokers, but still subject to availability.
Borrowing shares doesn’t mean that you can continue to keep your short selling position open forever. According to regulation, traders who borrow shares from licensed lender must return the shares back to lender latest on T6 and borrower have to buy back the shares within T6, take note : interest will be charged daily within T6.
This is the reason why you need to sign SBL agreement mentioned above.
Traders & Investors Responsibility
Different broker will have different arrangement for short selling in terms of trading limits, cut off time, borrowing interest, penalty for fail trades, & others.
As a traders, we have to make sure we understand all the charges and procedure before we commit to short selling trades. Don't be afraid to ask your dealer and remisier!
Keep your brokerage low for IDSS
Additional charges to take note, because short selling is only allow for day trade at the moment. Therefore, low brokerage rate is very important, at the moment in the market only cash account (which means, you only allow to trade up to the fund you deposit in, eg : deposit RM 10,000, can trade within the RM 10,000 only.).
So make sure your brokerage rate is low. You may contact us to open a trading account with Kelvin Yap under Mplus Online broker.
They are offering Intra day trade brokerage rate at 0.05% or RM 8 whichever is higher. Buy & hold at 0.08%or RM 8 whichever is higher.
Contact him by email : kelvinyap.remisier@gmail.com or 019-556 7829.
If we have missed out some important information in this blog, feel free to let us know and feel free to share this information out but it will be much appreciated if you can put us as the reference for our effort and respect, thank you in advance!
Understand more in our next weekly sharing webinar!
We will be sharing out more details about short selling such as different circumstances in Malaysia Stock Market, join our upcoming Monday Weekly KLSE Market POV at 8:30 pm to 9:15 pm at the link below :
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This blog is for sharing our point of view about the market
movement and stocks only. It is not and advice or recommendation to buy
or sell financial instrument. Viewers and readers are responsible on
your own trading decision. The author of this blog are not liable for
any losses incur by any investment or trading.
List of Approved Short Selling Counters :
- 5250 7-ELEVEN MALAYSIA HOLDINGS BERHAD
- 5959 A & M REALTY BHD
- 6599 AEON CO. (M) BHD
- 5139 AEON CREDIT SERVICE (M) BHD
- 5185 AFFIN HOLDINGS BHD
- 7078 AHMAD ZAKI RESOURCES BHD
- 5099 AIRASIA BHD
- 5238 AIRASIA X BERHAD
- 5116 AL-AQAR HEALTHCARE REIT
- 2488 ALLIANCE BANK MALAYSIA BERHAD
- 1163 ALLIANZ MALAYSIA BHD
- 5269 AL-SALAM REAL ESTATE INVESTMENT TRUST
- 5127 AMANAHRAYA REITS
- 1015 AMMB HOLDINGS BHD
- 6556 ANN JOO RESOURCES BHD
- 7129 ASIA FILE CORPORATION BHD
- 6399 ASTRO MALAYSIA HOLDINGS BERHAD
- 6888 AXIATA GROUP BERHAD
- 5106 AXIS REITS
- 7251 BARAKAH OFFSHORE PETROLEUM BHD
- 3239 BERJAYA ASSETS BERHAD
- 3395 BERJAYA CORPORATION BHD
- 5196 BERJAYA FOOD BERHAD
- 4219 BERJAYA LAND BHD
- 1562 BERJAYA SPORTS TOTO BHD
- 5248 BERMAZ AUTO BERHAD
- 5258 BIMB HOLDINGS BHD
- 5275 BISON CONSOLIDATED BERHAD
- 9288 BONIA CORPORATION BHD
- 7036 BORNEO OIL BHD
- 2771 BOUSTEAD HOLDINGS BHD
- 5254 BOUSTEAD PLANTATIONS BHD
- 4162 BRITISH AMERICAN TOBACCO (M)
- 5210 BUMI ARMADA BERHAD
- 1818 BURSA MALAYSIA BHD
- 7174 CAB CAKARAN CORPORATION BHD
- 2852 CAHYA MATA SARAWAK BHD
- 5105 CAN-ONE BHD
- 5180 CAPITALAND MALAYSIA MALL TRUST
- 2836 CARLSBERG BREWERY MALAYSIA BHD
- 7076 CB INDUSTRIAL PRODUCT HOLDING
- 7148 CCM DUOPHARMA BIOTECH BHD
- 2879 CHEMICAL COMPANY OF MALAYSIA
- 5273 CHIN HIN GROUP BERHAD
- 5007 CHIN WELL HOLDINGS BHD
- 1023 CIMB GROUP HOLDINGS BERHAD
- 5071 COASTAL CONTRACTS BHD
- 7205 COCOALAND HOLDINGS BHD
- 2127 COMFORT GLOVES BERHAD
- 5094 CSC STEEL HOLDINGS BERHAD
- 5184 CYPARK RESOURCES BERHAD
- 7204 D&O GREEN TECHNOLOGIES BERHAD
- 4456 DAGANG NEXCHANGE BERHAD
- 5216 DATASONIC GROUP BERHAD
- 5141 DAYANG ENTERPRISE HOLDINGS BHD
- 7212 DESTINI BERHAD
- 7277 DIALOG GROUP BHD
- 6947 DIGI.COM BHD
- 1619 DRB-HICOM BHD
- 3948 DUTALAND BHD
- 3417 EASTERN & ORIENTAL BHD
- 8206 ECO WORLD DEVELOPMENT GROUP BERHAD
- 5283 ECO WORLD INTERNATIONAL BERHAD
- 5253 ECONPILE HOLDINGS BHD
- 8877 EKOVEST BHD
- 0090 ELSOFT RESEARCH BHD
- 5101 EVERGREEN FIBREBOARD BHD
- 5205 EVERSENDAI CORPORATION BERHAD
- 0065 EXCEL FORCE MSC BHD
- 7229 FAVELLE FAVCO BHD
- 5222 FELDA GLOBAL VENTURES HLDG BHD
- 3689 FRASER & NEAVE HOLDINGS BHD
- 5226 GABUNGAN AQRS BERHAD
- 9261 GADANG HOLDINGS BHD
- 5398 GAMUDA BHD
- 5209 GAS MALAYSIA BERHAD
- 0078 GD EXPRESS CARRIER BHD
- 3182 GENTING BHD
- 4715 GENTING MALAYSIA BERHAD
- 2291 GENTING PLANTATIONS BERHAD
- 3204 GEORGE KENT (M) BHD
- 0021 GHL SYSTEMS BHD
- 7022 GLOBETRONICS TECHNOLOGY BHD
- 5020 GLOMAC BHD
- 5102 GUAN CHONG BHD
- 1503 GUOCOLAND (MALAYSIA) BHD
- 7668 HAI-O ENTERPRISE BHD
- 3034 HAP SENG CONSOLIDATED BHD
- 5138 HAP SENG PLANTATIONS HOLDINGS
- 5168 HARTALEGA HOLDINGS BHD
- 3255 HEINEKEN MALAYSIA BERHAD
- 5121 HEKTAR REITS
- 4324 HENGYUAN REFINING COMPANY BERHAD
- 5095 HEVEABOARD BHD
- 5072 HIAP TECK VENTURE BHD
- 5199 HIBISCUS PETROLEUM BHD
- 6238 HOCK SENG LEE BHD
- 5819 HONG LEONG BANK BHD
- 1082 HONG LEONG FINANCIAL GROUP BHD
- 3301 HONG LEONG INDUSTRIES BHD
- 5000 HUME INDUSTRIES BHD
- 5024 HUP SENG INDUSTRIES BHD
- 4251 I-BHD
- 1597 IGB CORPORATION BHD
- 5227 IGB REAL ESTATE INV TRUST
- 5225 IHH HEALTHCARE BERHAD
- 3336 IJM CORPORATION BHD
- 2216 IJM PLANTATIONS BHD
- 0166 INARI AMERTRON BERHAD
- 6262 INNOPRISE PLANTATIONS BERHAD
- 3379 INSAS BHD
- 1961 IOI CORPORATION BHD
- 5249 IOI PROPERTIES GROUP BERHAD
- 1589 ISKANDAR WATERFRONT CITY BERHAD
- 4723 JAKS RESOURCES BERHAD
- 4383 JAYA TIASA HOLDINGS BHD
- 5161 JCY INTERNATIONAL BERHAD
- 0127 JHM CONSOLIDATION BHD
- 5247 KAREX BERHAD
- 7216 KAWAN FOOD BHD
- 7161 KERJAYA PROSPEK GROUP BERHAD
- 3522 KIAN JOO CAN FACTORY BHD
- 5171 KIMLUN CORPORATION BERHAD
- 5235SS KLCC PROP&REITS-STAPLED SEC
- 7164 KNM GROUP BHD
- 7153 KOSSAN RUBBER INDUSTRIES BHD
- 5878 KPJ HEALTHCARE BHD
- 1996 KRETAM HOLDINGS BHD
- 5038 KSL HOLDINGS BHD
- 2445 KUALA LUMPUR KEPONG BHD
- 6491 KUMPULAN FIMA BHD
- 5843 KUMPULAN PERANGSANG SELANGOR
- 3794 LAFARGE MALAYSIA BERHAD
- 3174 LAND & GENERAL BHD
- 9385 LAY HONG BHD
- 5789 LBS BINA GROUP BHD
- 7089 LII HEN INDUSTRIES BHD
- 6645 LINGKARAN TRANS KOTA HOLDINGS
- 4235 LION INDUSTRIES CORPORATION
- 5284 LOTTE CHEMICAL TITAN HOLDING BERHAD
- 8621 LPI CAPITAL BHD
- 5143 LUXCHEM CORPORATION BHD
- 7617 MAGNA PRIMA BHD
- 7087 MAGNI-TECH INDUSTRIES BHD
- 3859 MAGNUM BERHAD
- 8583 MAH SING GROUP BHD
- 5264 MALAKOFF CORPORATION BERHAD
- 1155 MALAYAN BANKING BHD
- 3662 MALAYAN FLOUR MILLS BHD
- 3891 MALAYAN UNITED INDUSTRIES BHD
- 5014 MALAYSIA AIRPORTS HOLDINGS BHD
- 1171 MALAYSIA BUILDING SOCIETY BHD
- 5186 MALAYSIA MARINE AND HEAVY ENG
- 5077 MALAYSIAN BULK CARRIERS BHD
- 3867 MALAYSIAN PACIFIC INDUSTRIES
- 1651 MALAYSIAN RESOURCES CORPORATION BERHAD
- 6181 MALTON BHD
- 5236 MATRIX CONCEPTS HOLDINGS BHD
- 6012 MAXIS BERHAD
- 5983 MBM RESOURCES BHD
- 5090 MEDIA CHINESE INTERNATIONAL LT
- 4502 MEDIA PRIMA BHD
- 3069 MEGA FIRST CORPORATION BHD
- 5001 MIECO CHIPBOARD BHD
- 3816 MISC BHD
- 9571 MITRAJAYA HOLDINGS BHD
- 6114 MKH BERHAD
- 7595 ML GLOBAL BERHAD
- 2194 MMC CORPORATION BHD
- 6459 MNRB HOLDINGS BHD
- 5237 MPHB Capital Berhad
- 5123 MRCB-QUILL REIT
- 5202 MSM MALAYSIA HOLDINGS BERHAD
- 3883 MUDA HOLDINGS BHD
- 5085 MUDAJAYA GROUP BHD
- 5703 MUHIBBAH ENGINEERING (M) BHD
- 3905 MULPHA INTERNATIONAL BHD
- 0138 MY E.G. SERVICES BHD
- 4707 NESTLE (M) BHD
- 5066 NTPM HOLDINGS BHD
- 0172 OCK GROUP BERHAD
- 5201 OLDTOWN BERHAD
- 4006 ORIENTAL HOLDINGS BHD
- 5053 OSK HOLDINGS BHD
- 7095 P.I.E. INDUSTRIAL BHD
- 7052 PADINI HOLDINGS BHD
- 1724 PARAMOUNT CORPORATION BHD
- 5657 PARKSON HOLDINGS BHD
- 5212 PAVILION REAL ESTATE INV TRUST
- 7160 PENTAMASTER CORPORATION BHD
- 5219 PESTECH INTERNATIONAL BERHAD
- 3042 PETRON MALAYSIA REFINING & MARKETING BERHAD
- 5183 PETRONAS CHEMICALS GROUP BHD
- 5681 PETRONAS DAGANGAN BHD
- 6033 PETRONAS GAS BHD
- 9598 PINTARAS JAYA BHD
- 5075 PLENITUDE BHD
- 4634 POS MALAYSIA BHD
- 7237 POWER ROOT BERHAD
- 4065 PPB GROUP BHD
- 8869 PRESS METAL ALUMINIUM HOLDINGS BERHAD
- 5204 PRESTARIANG BERHAD
- 5070 PROTASCO BHD
- 1295 PUBLIC BANK BHD
- 6807 PUNCAK NIAGA HOLDINGS BHD
- 7084 QL RESOURCES BHD
- 5272 RANHILL HOLDINGS BERHAD
- 9296 RCE CAPITAL BHD
- 5256 REACH ENERGY BHD
- 1066 RHB BANK BERHAD
- 5113 RIMBUNAN SAWIT BHD
- 9741 ROHAS TECNIC BERHAD
- 0183 SALUTICA BERHAD
- 5218 SAPURA ENERGY BERHAD
- 5126 SARAWAK OIL PALMS BHD
- 7247 SCGM BHD
- 0099 SCICOM (MSC) BHD
- 4731 SCIENTEX BERHAD
- 9792 SEG INTERNATIONAL BHD
- 5279 SERBA DINAMIK HOLDINGS BERHAD
- 5517 SHANGRI-LA HOTELS (M) BHD
- 4197 SIME DARBY BHD
- 7155 SKP RESOURCES BHD
- 7248 SLP RESOURCES BHD
- 5665 SOUTHERN STEEL BHD
- 8664 SP SETIA BHD
- 6084 STAR MEDIA GROUP BERHAD
- 3743 SUNSURIA BERHAD
- 5211 SUNWAY BERHAD
- 5263 SUNWAY CONSTRUCTION GROUP BERHAD
- 5176 SUNWAY REAL ESTATE INVT TRUST
- 7106 SUPERMAX CORPORATION BHD
- 6521 SURIA CAPITAL HOLDINGS BHD
- 6139 SYARIKAT TAKAFUL MALAYSIA BHD
- 5012 TA ANN HOLDINGS BHD
- 4898 TA ENTERPRISE BHD
- 5158 TA GLOBAL BHD
- 8524 TALIWORKS CORPORATION BHD
- 5191 TAMBUN INDAH LAND BERHAD
- 4405 TAN CHONG MOTOR HOLDINGS BHD
- 2054 TDM BHD
- 4863 TELEKOM MALAYSIA BHD
- 5347 TENAGA NASIONAL BHD
- 5112 TH PLANTATIONS BHD
- 7034 THONG GUAN INDUSTRIES BHD
- 0012 THREE-A RESOURCES BHD
- 5031 TIME DOTCOM BHD
- 8397 TIONG NAM LOGISTICS HOLDINGS
- 5239 TITIJAYA LAND BERHAD
- 0101 TMC LIFE SCIENCES BHD
- 7113 TOP GLOVE CORPORATION BHD
- 5401 TROPICANA CORPORATION BERHAD
- 9059 TSH RESOURCES BHD
- 5230 TUNE PROTECT GROUP BERHAD
- 7100 UCHI TECHNOLOGIES BHD
- 1368 UEM EDGENTA BERHAD
- 5148 UEM SUNRISE BERHAD
- 4588 UMW HOLDINGS BHD
- 5243 UMW OIL & GAS CORPORATION BHD
- 5005 UNISEM (M) BHD
- 2593 UNITED MALACCA BHD
- 5200 UOA DEVELOPMENT BERHAD
- 5110 UOA REITS
- 7250 UZMA BHD
- 6963 V.S INDUSTRY BHD
- 0097 VITROX CORPORATION BHD
- 5142 WAH SEONG CORPORATION BHD
- 3565 WCE HOLDINGS BERHAD
- 9679 WCT HOLDINGS BERHAD
- 7231 WELLCALL HOLDINGS BHD
- 5246 WESTPORTS HOLDINGS BERHAD
- 4243 WTK HOLDINGS BHD
- 5584 YEE LEE CORPORATION BHD
- 7293 YINSON HOLDINGS BHD
- 3158 YNH PROPERTY BHD
- 7066 YONG TAI BHD
- 4677 YTL CORPORATION BHD
- 5109 YTL HOSPITALITY REIT
- 6742 YTL POWER INTERNATIONAL BHD
- 5131 ZHULIAN CORPORATION BHD
