Stock settlement shortened

Stock settlement shortened

KUALA LUMPUR (AFP): The Kuala Lumpur Stock Exchange said
yesterday it would reduce the settlement period for transactions
from seven days to five days from Aug. 18.

This meant that investors would have to complete their sales
and purchase of shares on the stock market within five days,
analysts said.

The news dampened the stock market, which had come under heavy
selling pressure various concerns over the ringgit, a possible
hike in general banking provisions and over non-performing loans.

The KLSE 100-share weighted composite index tumbled 1.8
percent, or 18.98 points, to 1,038.79 at the close of morning
trade.

Economist C.S. Lum with Phileo-Allied Securities said Bank
Negara may tighten the definition of non-performing loans to
those that have not been serviced for more than three months,
down from six months now.