Original market management measures reinstated


In a joint statement, the capital market regulators said they would reinstate the market management and control mechanisms, namely the dynamic and static price limits for FBM KLCI Index Component Stocks and the Bursa Malaysia circuit breaker trigger levels, to their original parameters on May 31.

PETALING JAYA: The Securities Commission (SC) and Bursa Malaysia Bhd will end the temporary revision of the market management and control mechanisms by the end of this month.

In a joint statement, the capital market regulators said they would reinstate the market management and control mechanisms, namely the dynamic and static price limits for FBM KLCI Index Component Stocks and the Bursa Malaysia circuit breaker trigger levels, to their original parameters on May 31.

“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 SC and Bursa Malaysia said.

The temporary revisions to the market management and control mechanisms, which had been in place since July 20,2020, are scheduled to expire on May 30,2021.

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

From May 31, circuit breaker levels will be back to three levels – when FBM KLCI recorded a decline of 10%, 15% and 20%, within a trading day – instead of two levels (10% and 15%) under temporary measure.

“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 SC and Bursa Malaysia said.“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 SC and Bursa Malaysia said.

For the first two levels, trading will be halted for one hour if triggered between 9am and 11.15am as well as between 2.30pm and 3.30pm, and will be halted for the rest of the trading session if triggered from 11:15am to 12:30pm or from 3:30pm to 5:00pm.

For the third-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 20% of the previous market day’s closing index.

From May 31, for FBM KLCI component stocks that are priced at or more than RM1, the upper limit for static price is +30% from the reference price and the lower limit price -30%, while the upper dynamic limit is +8% and lower dynamic limit is -8%.

For stocks that are priced less than RM1, the upper limit for static price +30 sen and the lower limit price is -30 sen, while the upper dynamic limit is +8 sen and the lower dynamic limit is -8 sen.

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