Indonesia to delay lifting short selling ban to support stock market, CNBC says
Jakarta's benchmark stock index (.JKSE), opens new tab suffered its worst monthly performance in February since March 2020, hurt by worries over U.S. import tariff policies and a weaker rupiah.
The decision was taken after the Financial Services Authority and Indonesia's stock exchange held talks with market stakeholders to address the fall in Jakarta's stock index, CNBC Indonesia reported, citing the authority's deputy commissioner Aditya Jayaantara.
Jakarta had been expected to allow short selling transactions at end of March.
Short selling involves borrowing a stock to sell it in the expectation the price will fall, then repurchasing the shares and pocketing the difference. Should the price rise, the seller can be exposed to potentially unlimited losses.
Jakarta's stock index rebounded on Monday, rising as much as 4.79%, while the rupiah closed 0.6% stronger against a dollar.
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