SC, Bursa revise market management measures

File photo: Bernama

KUALA LUMPUR: The Securities Commission (SC) and Bursa Malaysia Bhd will revise temporarily the existing market management and control mechanisms to provide added stability and confidence in the marketplace.

The revisions to the circuit breakers as well as static and dynamic price limits would be applicable for a six-month period from July 20, 2020 to Jan 18, 2021, they said in a joint statement yesterday.

Circuit breaker levels will be reduced to two — when the FTSE Bursa Malaysia (FBM KLCI) recorded a decline of 10 per cent and 15 per cent within a trading day — from three levels currently (10 per cent, 15 per cent and 20 per cent).

There is no change for the first level. Trading will still be halted for one hour if triggered between 9 am and 11.15 am as well as between 2.30 pm and 3.30 pm, and will be halted for the rest of the trading session if triggered from 11:15 am to 12:30 pm or from 3:30 pm to 5:00 pm.

However, for the second-level circuit breaker, trading will be halted for the rest of day as soon as the index falls by an aggregate of or more than 15 per cent of the previous market day’s closing index.

For FBM KLCI component stocks that are priced at or more than RM1, the upper limit for static price is +30 per cent from the reference price and the lower limit price -15 per cent, while the upper dynamic limit is +9.0 per cent and lower dynamic limit is -5.0 per cent.

For stocks that are priced less than RM1, the upper limit for static price +30 sen and the lower limit price is -15 sen, while the upper dynamic limit is +8.0 sen and the lower dynamic limit is -5.0 sen.

“The decision for these precautionary measures took into account global market conditions that remain volatile amidst persistent uncertainties due to Covid-19, continued economic weaknesses and the re-escalation of geopolitical tensions.

“The SC and Bursa Malaysia will continue to closely monitor global developments and take a prudent approach in implementing the necessary measures to support a fair and orderly market,” the regulators added. – Bernama