Brokers under restrictions

Brokers under restrictions

KUALA LUMPUR (AFP): The Kuala Lumpur Stock Exchange announced
Saturday it will place five Malaysian brokerages under trading
restrictions from next week.

The brokerages are Kuala Lumpur-based Sime Securities and
Capitalcorp Securities, MBf Northern Securities and Kin Khoon Co
in northern Perak state and Labuan Securities in Labuan island
off eastern Sabah state.

From Monday, the five firms will only be allowed to conduct or
execute selling transactions while purchases can only be made
upon receipt of 100 percent up front payment, the exchange said
in a statement.

The brokerages are also prohibited from undertaking margin
purchases and direct business transactions as well as "any other
form of activities which may increase (their) risks or exposure."

No reasons were given for the trading curbs but the stock
exchange said the restrictions will be immediately lifted once
the companies have "regularized their trading positions."