Both Greece and South Korea have instituted bans on short selling as the fragile markets are pummeled by the latest global market turmoil.
The Wall Street Journal reports that Koreas Financial Supervisory Commission instituted a ban from tomorrow, August 10, to November 9. Korea, a major exporter and one of the strongest Asian economies, generally fares well when the global markets are strong but is susceptible to fluctuations. The Korean market has tumbled in recent days as foreign investors engage in a massive selloff of Korean stocks, the newspaper reports.
Meanwhile, the Greek capital market regulator has also banned short selling beginning today, August 9, lasting two months. Confidence has yet to return to Greece, whose market has also tumbled in the most recent trading days, since the near collapse of its economy in the past year.
(CG)