Bursa Malaysia Intra Day Short Selling Basic Understanding

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 :

 

https://attendee.gotowebinar.com/register/4562907669705827074

 

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 :

  1. 5250 7-ELEVEN MALAYSIA HOLDINGS BERHAD
  2. 5959 A & M REALTY BHD
  3. 6599 AEON CO. (M) BHD
  4. 5139 AEON CREDIT SERVICE (M) BHD
  5. 5185 AFFIN HOLDINGS BHD
  6. 7078 AHMAD ZAKI RESOURCES BHD
  7. 5099 AIRASIA BHD
  8. 5238 AIRASIA X BERHAD
  9. 5116 AL-AQAR HEALTHCARE REIT
  10. 2488 ALLIANCE BANK MALAYSIA BERHAD
  11. 1163 ALLIANZ MALAYSIA BHD
  12. 5269 AL-SALAM REAL ESTATE INVESTMENT TRUST
  13. 5127 AMANAHRAYA REITS
  14. 1015 AMMB HOLDINGS BHD
  15. 6556 ANN JOO RESOURCES BHD
  16. 7129 ASIA FILE CORPORATION BHD
  17. 6399 ASTRO MALAYSIA HOLDINGS BERHAD
  18. 6888 AXIATA GROUP BERHAD
  19. 5106 AXIS REITS
  20. 7251 BARAKAH OFFSHORE PETROLEUM BHD
  21. 3239 BERJAYA ASSETS BERHAD
  22. 3395 BERJAYA CORPORATION BHD
  23. 5196 BERJAYA FOOD BERHAD
  24. 4219 BERJAYA LAND BHD
  25. 1562 BERJAYA SPORTS TOTO BHD
  26. 5248 BERMAZ AUTO BERHAD
  27. 5258 BIMB HOLDINGS BHD
  28. 5275 BISON CONSOLIDATED BERHAD
  29. 9288 BONIA CORPORATION BHD
  30. 7036 BORNEO OIL BHD
  31. 2771 BOUSTEAD HOLDINGS BHD
  32. 5254 BOUSTEAD PLANTATIONS BHD
  33. 4162 BRITISH AMERICAN TOBACCO (M)
  34. 5210 BUMI ARMADA BERHAD
  35. 1818 BURSA MALAYSIA BHD
  36. 7174 CAB CAKARAN CORPORATION BHD
  37. 2852 CAHYA MATA SARAWAK BHD
  38. 5105 CAN-ONE BHD
  39. 5180 CAPITALAND MALAYSIA MALL TRUST
  40. 2836 CARLSBERG BREWERY MALAYSIA BHD
  41. 7076 CB INDUSTRIAL PRODUCT HOLDING
  42. 7148 CCM DUOPHARMA BIOTECH BHD
  43. 2879 CHEMICAL COMPANY OF MALAYSIA
  44. 5273 CHIN HIN GROUP BERHAD
  45. 5007 CHIN WELL HOLDINGS BHD
  46. 1023 CIMB GROUP HOLDINGS BERHAD
  47. 5071 COASTAL CONTRACTS BHD
  48. 7205 COCOALAND HOLDINGS BHD
  49. 2127 COMFORT GLOVES BERHAD
  50. 5094 CSC STEEL HOLDINGS BERHAD
  51. 5184 CYPARK RESOURCES BERHAD
  52. 7204 D&O GREEN TECHNOLOGIES BERHAD
  53. 4456 DAGANG NEXCHANGE BERHAD
  54. 5216 DATASONIC GROUP BERHAD
  55. 5141 DAYANG ENTERPRISE HOLDINGS BHD
  56. 7212 DESTINI BERHAD
  57. 7277 DIALOG GROUP BHD
  58. 6947 DIGI.COM BHD
  59. 1619 DRB-HICOM BHD
  60. 3948 DUTALAND BHD
  61. 3417 EASTERN & ORIENTAL BHD
  62. 8206 ECO WORLD DEVELOPMENT GROUP BERHAD
  63. 5283 ECO WORLD INTERNATIONAL BERHAD
  64. 5253 ECONPILE HOLDINGS BHD
  65. 8877 EKOVEST BHD
  66. 0090 ELSOFT RESEARCH BHD
  67. 5101 EVERGREEN FIBREBOARD BHD
  68. 5205 EVERSENDAI CORPORATION BERHAD
  69. 0065 EXCEL FORCE MSC BHD
  70. 7229 FAVELLE FAVCO BHD
  71. 5222 FELDA GLOBAL VENTURES HLDG BHD
  72. 3689 FRASER & NEAVE HOLDINGS BHD
  73. 5226 GABUNGAN AQRS BERHAD
  74. 9261 GADANG HOLDINGS BHD
  75. 5398 GAMUDA BHD
  76. 5209 GAS MALAYSIA BERHAD
  77. 0078 GD EXPRESS CARRIER BHD
  78. 3182 GENTING BHD
  79. 4715 GENTING MALAYSIA BERHAD
  80. 2291 GENTING PLANTATIONS BERHAD
  81. 3204 GEORGE KENT (M) BHD
  82. 0021 GHL SYSTEMS BHD
  83. 7022 GLOBETRONICS TECHNOLOGY BHD
  84. 5020 GLOMAC BHD
  85. 5102 GUAN CHONG BHD
  86. 1503 GUOCOLAND (MALAYSIA) BHD
  87. 7668 HAI-O ENTERPRISE BHD
  88. 3034 HAP SENG CONSOLIDATED BHD
  89. 5138 HAP SENG PLANTATIONS HOLDINGS
  90. 5168 HARTALEGA HOLDINGS BHD
  91. 3255 HEINEKEN MALAYSIA BERHAD
  92. 5121 HEKTAR REITS
  93. 4324 HENGYUAN REFINING COMPANY BERHAD
  94. 5095 HEVEABOARD BHD
  95. 5072 HIAP TECK VENTURE BHD
  96. 5199 HIBISCUS PETROLEUM BHD
  97. 6238 HOCK SENG LEE BHD
  98. 5819 HONG LEONG BANK BHD
  99. 1082 HONG LEONG FINANCIAL GROUP BHD
  100. 3301 HONG LEONG INDUSTRIES BHD
  101. 5000 HUME INDUSTRIES BHD
  102. 5024 HUP SENG INDUSTRIES BHD
  103. 4251 I-BHD
  104. 1597 IGB CORPORATION BHD
  105. 5227 IGB REAL ESTATE INV TRUST
  106. 5225 IHH HEALTHCARE BERHAD
  107. 3336 IJM CORPORATION BHD
  108. 2216 IJM PLANTATIONS BHD
  109. 0166 INARI AMERTRON BERHAD
  110. 6262 INNOPRISE PLANTATIONS BERHAD
  111. 3379 INSAS BHD
  112. 1961 IOI CORPORATION BHD
  113. 5249 IOI PROPERTIES GROUP BERHAD
  114. 1589 ISKANDAR WATERFRONT CITY BERHAD
  115. 4723 JAKS RESOURCES BERHAD
  116. 4383 JAYA TIASA HOLDINGS BHD
  117. 5161 JCY INTERNATIONAL BERHAD
  118. 0127 JHM CONSOLIDATION BHD
  119. 5247 KAREX BERHAD
  120. 7216 KAWAN FOOD BHD
  121. 7161 KERJAYA PROSPEK GROUP BERHAD
  122. 3522 KIAN JOO CAN FACTORY BHD
  123. 5171 KIMLUN CORPORATION BERHAD
  124. 5235SS KLCC PROP&REITS-STAPLED SEC
  125. 7164 KNM GROUP BHD
  126. 7153 KOSSAN RUBBER INDUSTRIES BHD
  127. 5878 KPJ HEALTHCARE BHD
  128. 1996 KRETAM HOLDINGS BHD
  129. 5038 KSL HOLDINGS BHD
  130. 2445 KUALA LUMPUR KEPONG BHD
  131. 6491 KUMPULAN FIMA BHD
  132. 5843 KUMPULAN PERANGSANG SELANGOR
  133. 3794 LAFARGE MALAYSIA BERHAD
  134. 3174 LAND & GENERAL BHD
  135. 9385 LAY HONG BHD
  136. 5789 LBS BINA GROUP BHD
  137. 7089 LII HEN INDUSTRIES BHD
  138. 6645 LINGKARAN TRANS KOTA HOLDINGS
  139. 4235 LION INDUSTRIES CORPORATION
  140. 5284 LOTTE CHEMICAL TITAN HOLDING BERHAD
  141. 8621 LPI CAPITAL BHD
  142. 5143 LUXCHEM CORPORATION BHD
  143. 7617 MAGNA PRIMA BHD
  144. 7087 MAGNI-TECH INDUSTRIES BHD
  145. 3859 MAGNUM BERHAD
  146. 8583 MAH SING GROUP BHD
  147. 5264 MALAKOFF CORPORATION BERHAD
  148. 1155 MALAYAN BANKING BHD
  149. 3662 MALAYAN FLOUR MILLS BHD
  150. 3891 MALAYAN UNITED INDUSTRIES BHD
  151. 5014 MALAYSIA AIRPORTS HOLDINGS BHD
  152. 1171 MALAYSIA BUILDING SOCIETY BHD
  153. 5186 MALAYSIA MARINE AND HEAVY ENG
  154. 5077 MALAYSIAN BULK CARRIERS BHD
  155. 3867 MALAYSIAN PACIFIC INDUSTRIES
  156. 1651 MALAYSIAN RESOURCES CORPORATION BERHAD
  157. 6181 MALTON BHD
  158. 5236 MATRIX CONCEPTS HOLDINGS BHD
  159. 6012 MAXIS BERHAD
  160. 5983 MBM RESOURCES BHD
  161. 5090 MEDIA CHINESE INTERNATIONAL LT
  162. 4502 MEDIA PRIMA BHD
  163. 3069 MEGA FIRST CORPORATION BHD
  164. 5001 MIECO CHIPBOARD BHD
  165. 3816 MISC BHD
  166. 9571 MITRAJAYA HOLDINGS BHD
  167. 6114 MKH BERHAD
  168. 7595 ML GLOBAL BERHAD
  169. 2194 MMC CORPORATION BHD
  170. 6459 MNRB HOLDINGS BHD
  171. 5237 MPHB Capital Berhad
  172. 5123 MRCB-QUILL REIT
  173. 5202 MSM MALAYSIA HOLDINGS BERHAD
  174. 3883 MUDA HOLDINGS BHD
  175. 5085 MUDAJAYA GROUP BHD
  176. 5703 MUHIBBAH ENGINEERING (M) BHD
  177. 3905 MULPHA INTERNATIONAL BHD
  178. 0138 MY E.G. SERVICES BHD
  179. 4707 NESTLE (M) BHD
  180. 5066 NTPM HOLDINGS BHD
  181. 0172 OCK GROUP BERHAD
  182. 5201 OLDTOWN BERHAD
  183. 4006 ORIENTAL HOLDINGS BHD
  184. 5053 OSK HOLDINGS BHD
  185. 7095 P.I.E. INDUSTRIAL BHD
  186. 7052 PADINI HOLDINGS BHD
  187. 1724 PARAMOUNT CORPORATION BHD
  188. 5657 PARKSON HOLDINGS BHD
  189. 5212 PAVILION REAL ESTATE INV TRUST
  190. 7160 PENTAMASTER CORPORATION BHD
  191. 5219 PESTECH INTERNATIONAL BERHAD
  192. 3042 PETRON MALAYSIA REFINING & MARKETING BERHAD
  193. 5183 PETRONAS CHEMICALS GROUP BHD
  194. 5681 PETRONAS DAGANGAN BHD
  195. 6033 PETRONAS GAS BHD
  196. 9598 PINTARAS JAYA BHD
  197. 5075 PLENITUDE BHD
  198. 4634 POS MALAYSIA BHD
  199. 7237 POWER ROOT BERHAD
  200. 4065 PPB GROUP BHD
  201. 8869 PRESS METAL ALUMINIUM HOLDINGS BERHAD
  202. 5204 PRESTARIANG BERHAD
  203. 5070 PROTASCO BHD
  204. 1295 PUBLIC BANK BHD
  205. 6807 PUNCAK NIAGA HOLDINGS BHD
  206. 7084 QL RESOURCES BHD
  207. 5272 RANHILL HOLDINGS BERHAD
  208. 9296 RCE CAPITAL BHD
  209. 5256 REACH ENERGY BHD
  210. 1066 RHB BANK BERHAD
  211. 5113 RIMBUNAN SAWIT BHD
  212. 9741 ROHAS TECNIC BERHAD
  213. 0183 SALUTICA BERHAD
  214. 5218 SAPURA ENERGY BERHAD
  215. 5126 SARAWAK OIL PALMS BHD
  216. 7247 SCGM BHD
  217. 0099 SCICOM (MSC) BHD
  218. 4731 SCIENTEX BERHAD
  219. 9792 SEG INTERNATIONAL BHD
  220. 5279 SERBA DINAMIK HOLDINGS BERHAD
  221. 5517 SHANGRI-LA HOTELS (M) BHD
  222. 4197 SIME DARBY BHD
  223. 7155 SKP RESOURCES BHD
  224. 7248 SLP RESOURCES BHD
  225. 5665 SOUTHERN STEEL BHD
  226. 8664 SP SETIA BHD
  227. 6084 STAR MEDIA GROUP BERHAD
  228. 3743 SUNSURIA BERHAD
  229. 5211 SUNWAY BERHAD
  230. 5263 SUNWAY CONSTRUCTION GROUP BERHAD
  231. 5176 SUNWAY REAL ESTATE INVT TRUST
  232. 7106 SUPERMAX CORPORATION BHD
  233. 6521 SURIA CAPITAL HOLDINGS BHD
  234. 6139 SYARIKAT TAKAFUL MALAYSIA BHD
  235. 5012 TA ANN HOLDINGS BHD
  236. 4898 TA ENTERPRISE BHD
  237. 5158 TA GLOBAL BHD
  238. 8524 TALIWORKS CORPORATION BHD
  239. 5191 TAMBUN INDAH LAND BERHAD
  240. 4405 TAN CHONG MOTOR HOLDINGS BHD
  241. 2054 TDM BHD
  242. 4863 TELEKOM MALAYSIA BHD
  243. 5347 TENAGA NASIONAL BHD
  244. 5112 TH PLANTATIONS BHD
  245. 7034 THONG GUAN INDUSTRIES BHD
  246. 0012 THREE-A RESOURCES BHD
  247. 5031 TIME DOTCOM BHD
  248. 8397 TIONG NAM LOGISTICS HOLDINGS
  249. 5239 TITIJAYA LAND BERHAD
  250. 0101 TMC LIFE SCIENCES BHD
  251. 7113 TOP GLOVE CORPORATION BHD
  252. 5401 TROPICANA CORPORATION BERHAD
  253. 9059 TSH RESOURCES BHD
  254. 5230 TUNE PROTECT GROUP BERHAD
  255. 7100 UCHI TECHNOLOGIES BHD
  256. 1368 UEM EDGENTA BERHAD
  257. 5148 UEM SUNRISE BERHAD
  258. 4588 UMW HOLDINGS BHD
  259. 5243 UMW OIL & GAS CORPORATION BHD
  260. 5005 UNISEM (M) BHD
  261. 2593 UNITED MALACCA BHD
  262. 5200 UOA DEVELOPMENT BERHAD
  263. 5110 UOA REITS
  264. 7250 UZMA BHD
  265. 6963 V.S INDUSTRY BHD
  266. 0097 VITROX CORPORATION BHD
  267. 5142 WAH SEONG CORPORATION BHD
  268. 3565 WCE HOLDINGS BERHAD
  269. 9679 WCT HOLDINGS BERHAD
  270. 7231 WELLCALL HOLDINGS BHD
  271. 5246 WESTPORTS HOLDINGS BERHAD
  272. 4243 WTK HOLDINGS BHD
  273. 5584 YEE LEE CORPORATION BHD
  274. 7293 YINSON HOLDINGS BHD
  275. 3158 YNH PROPERTY BHD
  276. 7066 YONG TAI BHD
  277. 4677 YTL CORPORATION BHD
  278. 5109 YTL HOSPITALITY REIT
  279. 6742 YTL POWER INTERNATIONAL BHD
  280. 5131 ZHULIAN CORPORATION BHD
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