ASX delays start of trading for 1 hour

The Australian Securities Exchange today delayed the start of equities trading while it sought to clarify aspects of move by the corporate regulator to ban short selling in the domestic market.

Trading is now expected to start at 1100.

The Australian Securities and Investments Commission (ASIC) said yesterday that it had widened its ban on short selling announced on Friday to include covered as well as naked transactions.

ASIC says it will reassess and advise the market in 30 days, whether or not it intends to re-admit covered short sales for non-financial stocks.

The exchange later said ASIC had advised that existing hedged positions would be exempt from the covered short selling ban.

The exchange had sought the clarification from ASIC.

Analysts have tipped the Australian stock market to open strongly today after Wall Street roared higher on Friday following the announcement of a $A870 billion rescue package to save banks drowning in toxic mortgage debt.