Short-selling ban expected to be lifted
Analysts are predicting the Australian Securities and Investments Commission (ASIC) will next week opt not to extend its ban on short-selling and that the move will have significant share price implications for financial stocks.
Analyst reports are reminding subscribers that the ASIC short-selling ban is scheduled to expire next Tuesday (27 January) and that if the regulator decides not to extend the measure, it would be following the same course as the United Kingdom regulator and the US Securities Exchange Commission.
The analysis said financial stocks had outperformed the market during the short-selling ban, with the S&P/ASX 200 Financials Accumulation Index outperforming the S&P/ASX 200 Accumulation Index by 8 per cent.
The Government has moved to legislate to require the disclosure of short-selling positions but there remains disagreement between the Government and some sectors of the industry over how, precisely, that disclosure regime should work.
AUTHOR
Mike Taylor
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