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.