shorting of pna

Will the down spiralling share price of PNA be positively affected by the new ASIC regulation regarding "short selling".
Part of "The Australian" article today:

"SPECULATORS and hedge funds will be banned from forcing share prices lower by undisclosed short selling under rules announced by the corporate regulator yesterday in an attempt to reduce the risk ofplunging markets putting the survival of major institutions injeopardy.

The regulator acted as plans by the US Government to take over all the bad debts of the banking system sparked a huge rally in share markets, with the S&P/ASX200 index jumping 4.4 per cent to 4804 points, its fourth-biggest single-day jump in history.

Wayne Swan said the rules on short selling developed by the Australian Securities and Investments Commission and the stock exchange brought Australia into line with guidelines introduced in the New York and London exchanges this week.

"Australia has a world-class regulatory system and this action today will help ensure ongoing confidence in the operation of Australia's financial markets," the Treasurer said.

Short selling - the practice of investors selling a share they donot own in the hope of buying it later at a lower price - contributed to the market rout over the past week, particularly the wild gyrations in Macquarie Bank shares.

Macquarie shares, which had lost $7.88 in market mayhem on Thursday, made up $9.85 yesterday, leading a jump by financial stocks of just under 10 per cent. However, the market remains 2 per cent down at the end of a turbulent week, and conditions in financial markets were more stressed yesterday than at any time in the past year.


Under new trading rules unveiled by ASIC chief Tony D'Aloisio last night, short selling of shares will still be permitted, provided the investor has an ironclad agreement to borrow the shares being sold and discloses it to the market.

The practice of hedge funds of simply selling shares they do not own and buying them later on-market will be banned, at least until the Government introduces legislation covering short selling later this year.

Assistant Treasurer Nick Sherry said the legislation would strengthen the disclosure requirements on short selling. "Use of short selling to manipulate the market or to take advantage of the situation currently confronting global financial markets is of significant concern," he said.

Australian Investor Relations Association chief executive Ian Matheson said the regulator's move ensured Australia's markets did not become a safe haven for the hedge funds."

thanks Jahar