PSE recalibrates short selling program launch
‘Formal launch of the PSE’s short selling program has been moved to 6 November, from the original launch date of 23 October.’
Daily Tribune‘Formal launch of the PSE’s short selling program has been moved to 6 November, from the original launch date of 23 October.’
The Philippine Stock Exchange or PSE has expanded the leeway of its short selling program so that market participants can better comply with securities requirements.
The PSE on Friday announced that it moved the formal launch of its short selling program to 6 November, from the original launch date of 23 October.
"The implementation of short selling is an important milestone for the Philippine stock market. The ability to take short positions will provide investors a tool to hedge their investments, which hopefully will help attract foreign investors back to our market," PSE president and CEO Ramon S. Monzon said.
Short selling is a practice of betting on the decline of a stock's price to make a profit. It allows an investor to sell a security that he does not own, consummated by the delivery of a borrowed security, with a commitment to return the borrowed security or its equivalent on a determined or determinable future date.
In Asia, short selling is allowed in Singapore, Hong Kong, Malaysia, Thailand and Indonesia, among others.
Generate increased trading activity
According to Monzon, short selling will help generate increased trading activity as more shares are made available through lending.
A total of 53 securities will initially be eligible for short selling. These securities are the constituents of the PSEi, the MidCap, and Dividend Yield indices, as well as an exchange-traded fund.
The list of eligible securities will be updated when there are changes in the composition of the said indices.
To recall, the PSE released the Guidelines for Short Selling Transactions on 2 October.
