What Is Limit Up & Limit Down In Bursa Malaysia?

Posted by Kris | Tuesday, July 24, 2012 | , | 0 comments »





Here is the definition of Limit Up & Limit Down for Bursa Malaysia stocks. Basically, in Malaysia having a limit up event happening on your stock is a good thing and you can smile all the way to the bank.

Limit down events however, will make you cry. So far, those highly speculative stocks aka pump & dump are the ones very susceptible to limit downs. It can happen continuously over a few sessions/days, even though the counter already halted in the previous trading sessions. The main reason will be that the bad news will usually comes out in bit and pieces and slowly kills the hope of those punters that are willing to catch the falling knife for a quick gain.

In my experience, "Limit Up" usually happens in one session only .The good news about the stock's privatization & take-over usually comes with an announced FIXED price tag. So everyone knows what the stock will be worth and also usually the premium price paid for the privatization will not be so high to warrant a double limit up. 




Trading Limits (except new listings)

Stock > RM1 
Limit Up: 30% Limit Down:30%

Stock < RM1
Limit Up: 30cent Limit Down:30cent



Trading Limits for new listings (including IPO listings)


Stock > RM1 
Limit Up: 400% Limit Down:30%

Stock < RM1
Limit Up: 400% or 30cent whichever is higher Limit Down:30cent





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