OZschwitz: Market manipulator ASIC lifts ban on short-selling

BANK stocks recorded sharp falls after a surprise decision by the Australian Securities and Investment Commission to lift a ban on short-selling a week before it was due to expire.

Market watchers warned there could be further falls later this week as the US market was closed on Monday for a public holiday. Yesterday's falls were less severe than in Britain and US the day after regulators lifted bans there. There was speculation that ASIC's announcement had caught hedge funds off guard. Brokers and fund managers welcomed the decision to lift the ban after eight months and four extensions, saying it would attract more foreign investors and improve market efficiency.

But analysts said the lifting of the ban was behind yesterday's slump in bank shares. Bank of Queensland fell 4.12 per cent, Westpac 3.61 per cent and Bendigo Bank 3.51 per cent. The fund manager Perpetual fell 8.9 per cent, on unusually high turnover, and Platinum Asset Management lost 4.62 per cent. Macquarie Group, thought to be among stocks most at risk from short-selling, fell by 6.6 per cent, its biggest one-day loss since March 2, but trading volume was low.

LNK

OZschwitz: Market manipulator ASIC lifts ban on short-selling

OZschwitz: Market manipulator ASIC lifts ban on short-selling

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