KUALA LUMPUR: The Securities Commission (SC) and Bursa Malaysia will reinstate the market management and control mechanisms on May 31 as the economic outlook improves and global markets normalise.
The dynamic and static price limits for the 30-stock FBM KLCI stocks and the Bursa Malaysia circuit breaker trigger levels will be back to their original parameters, they said in a joint statement on Monday.
The temporary revisions to the market management and control mechanisms which have been in place since July 20,2020. They are scheduled to expire on 30 May 2021.
“The decision to reinstate the original parameters takes into account the improving economic outlook with the roll-out of the Covid-19 vaccination programme and normalisation of global market conditions, ” the statement said.
They said under the static price limit, the lower limit price reverts back to -30% from -15% for securities prices below or at RM1, and to -30 sen from -15 sen for securities prices more than RM1.
As for the dynamic price limit, the lower level reverts back to -8% from -5% for securities' prices more than or at RM1 and to -8 sen from -5 sen for securities prices less than RM1.
As for the temporary revision of the circuit breaker levels to two trigger levels (10% and 15% only), they will revert to three trigger levels (10%, 15% and 20%).