Recently, many stocks in the Malaysian stock market have frequently fallen below the limit. Do you know under what circumstances the limit-down mechanism will be triggered?
According to Bursa Malaysia’s stock trading guidelines, stocks with a stock price exceeding RM1.00 will trigger the price limit if they fall by more than 30%. As for stocks whose stock price is below RM1.00, the price limit will be triggered if the price falls by more than 30 sen.
As for the comprehensive index circuit breaker (Circuit Breaker), it will be triggered when the price falls by more than 10%, 15% and 20% in a day.
If the FBMKLCI falls between 10% and 15% between 9am and 11:15am and between 2:30pm and 3:30pm, the market will stop trading for one hour. After the resumption of trading, if the price falls between 15% and 20% during that period, trading will be suspended for another hour.
If the market falls between 10% and 15% between 11:15 am and 12:30 pm, and between 3:30 pm and 5 pm, trading will cease during this period. If after resumption of trading, it falls by another 15% to 20% during this period, trading will stop at this stage.
If the FTSE Composite Index falls by more than 20%, the market will cease trading entirely on that day.
