Thursday,Jan 4 2007, 12:35:26 AMShort selling allowed on 70 selected stocks

KUALA LUMPUR: Malaysia yesterday began to allow short selling of 70 selected company shares, lifting a nine-year ban imposed in the wake of the 1997/98 Asian financial crisis. 

Short-sellers borrow shares and sell them on expectation that prices will have declined by the time they need to buy them back and return them to the share lender. Typically they are a feature of developed markets, enhancing market liquidity and boosting returns for fund managers who lend out their shares for a fee. 

The resumption is aimed at boosting foreign interest, but analysts said they did not expect a high level of short selling in Malaysia yet. Investors have largely been bullish on Asian equity markets after a strong 2006. 

“Short selling has not been ignored, but no one wants to take a chance,” head of research at OSK Research, Kenny Yee, said. 

“With the market on an uptrend and everyone entering the new year expecting the Malaysian market to touch 1,200-1,300 points, how can you find anyone with the guts to short sell the market?” 

Under the new rule, owners of stocks will get a 2% return on lending a minimum of 50,000 shares to a central lending pool, with stock exchange operator Bursa Malaysia as the counter party. Lenders previously received 1%, analysts said. 

Short sellers may borrow a minimum of 100 shares, paying a 2.2% charge and a RM100 borrowing fee. They are also required to provide at least 105% collateral on the amount they borrow. – Reuters

 excerpt : http://www.thestar.com.my

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Thursday,Apr 27 2006, 04:52:16 PMMalaysia’s interest rate raised to 3.5%

By YVONNE TAN

PETALING JAYA: Bank Negara has raised the overnight policy rate (OPR) by 25 basis points to 3.5%. The ceiling and floor rates of the corridor for the OPR are correspondingly increased to 3.75% and 3.25% respectively.

The central bank said in a statement yesterday that with strong growth in world trade projected this year, the country would benefit directly through higher exports and better terms of trade due to the higher prices for Malaysia’s commodities. ...

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Sunday,Apr 9 2006, 03:15:37 PMHow much do you actually pay?

If you are thinking of changing your car, think twice!

Recently I've talked to a friend who said he wanted to change his car because interest rate is lower now compared to the time when he purchased his car.

Let's look at the logic behind: ...

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