New board lot trading in 4 stages


  • Business
  • Thursday, 13 Mar 2003

BY IZWAN IDRIS

Abdul Hamid Sheik Mohamed

THE KLSE will be implementing the trading in securities in standard board lots of 100 units in four stages, beginning next month. 

“We will start implementing the first stage in April and we will conclude the exercise involving all four stages by June 2003,'' KLSE deputy president (strategy & development) Abdul Hamid Sheik Mohamed said in a statement yesterday. 

He added that the exercise to standardise board lots for all securities listed on the KLSE was being conducted in stages to ensure maintenance of an orderly market. 

“The first stage will involve all stocks in all sectors on the second board,” Hamid said. “The second, third and fourth stages will involve the conversion of stocks on the main board by sectors. Mesdaq market stocks are already trading in 100-unit board lots.'' 

For each stage, the KLSE will announce the implementation date at least a week in advance to give investors, dealers and other market participants enough time to make the necessary preparations. 

The statement said that to ensure industry readiness, system integration tests were being conducted between the KLSE and stockbroking member companies. 

 

THE FOUR STAGES OF THE IMPLEMENTATION PLAN
StageBoardSectorTotal no. of companies(as at 11/3/03)
1Second BoardAll sectors351
2Main BoardTrading/Services108
3Main BoardConsumer products, plantation, hotel, industrial products, property, technology, infrastructure project companies319
4Main BoardLoans/warrants/TSRs, mining, trusts, closed/fund, finance, construction, PN4 condition329
Source: KLSE

 

“Only when we are satisfied with the system integration tests and sure of market readiness will we be able to confirm the implementation date of the first stage,'' Hamid said. 

For more information on the matter, investors can visit the KLSE website at www.klse.com.my .  

An investor's guide on “Standard board lot of 100 units” in English, Bahasa Malaysia and Chinese will also be distributed through the network of authorised depository agents and KLSE stockbroking member companies by Saturday.  

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