Friday, March 5, 2021
  • Sign Up
  • Chat
  • Help
PRIVATE ARTICLE
CLIENTS LOGIN
The Exclusive Kim's Stockwatch
Advertisement
  • INTRO
    • Overview
    • About Kim
    • Testimonial
  • NEW TO MARKET
    • Super Investor
    • I Have Money
    • Let’s Quickie
    • Important Things
  • KIM’S SERVICES
    • Kim’s Group Trader (KGT)
    • Kim’s Investment Club (KIC)
    • Kim’s Prime Trader (KPT)
  • KIM’S NEWS
    • Kim’s Ideas
    • Today’s Calls
  • KIM’S LIBRARY
    Wall Street market bubble?

    Wall Street market bubble?

    Panic-Emotional Trading on State of Emergency?

    Panic-Emotional Trading on State of Emergency?

    Revision Static and Dynamic Price Limits

    Revision Static and Dynamic Price Limits

    Fundamental Analysis

    Fundamental Analysis

    Technical Analysis

    Technical Analysis

    Stock Analysis

    Stock Analysis

    What is PE ratio?

    What is PE ratio?

    Top Line Vs Bottom Line

    Top Line Vs Bottom Line

    Blue chip stocks

    Blue chip stocks

    Sustainable growth

    Sustainable growth

    Capital Market and Its Types

    Capital Market and Its Types

    Stop Loss

    Stop Loss

    Bonds vs Stocks – Know the Difference Between Shares & Bonds

    Bonds vs Stocks – Know the Difference Between Shares & Bonds

    What Is Hedging In Stock Market

    What Is Hedging In Stock Market

    What is Pre market trading?

    What is Pre market trading?

    How to invest in stock market with little money?

    How to invest in stock market with little money?

    What is a stock market crash?

    What is a stock market crash?

    How to read stock charts for beginners?

    How to read stock charts for beginners?

    What is preference share & types of preference shares?

    What is preference share & types of preference shares?

    IPO and FPO – Know the Difference Between IPO & FPO

    IPO and FPO – Know the Difference Between IPO & FPO

  • JOIN KIM’S
    • Open Membership
    • Win Cash
    • Contact Us
  • COVID-19
No Result
View All Result
  • INTRO
    • Overview
    • About Kim
    • Testimonial
  • NEW TO MARKET
    • Super Investor
    • I Have Money
    • Let’s Quickie
    • Important Things
  • KIM’S SERVICES
    • Kim’s Group Trader (KGT)
    • Kim’s Investment Club (KIC)
    • Kim’s Prime Trader (KPT)
  • KIM’S NEWS
    • Kim’s Ideas
    • Today’s Calls
  • KIM’S LIBRARY
    Wall Street market bubble?

    Wall Street market bubble?

    Panic-Emotional Trading on State of Emergency?

    Panic-Emotional Trading on State of Emergency?

    Revision Static and Dynamic Price Limits

    Revision Static and Dynamic Price Limits

    Fundamental Analysis

    Fundamental Analysis

    Technical Analysis

    Technical Analysis

    Stock Analysis

    Stock Analysis

    What is PE ratio?

    What is PE ratio?

    Top Line Vs Bottom Line

    Top Line Vs Bottom Line

    Blue chip stocks

    Blue chip stocks

    Sustainable growth

    Sustainable growth

    Capital Market and Its Types

    Capital Market and Its Types

    Stop Loss

    Stop Loss

    Bonds vs Stocks – Know the Difference Between Shares & Bonds

    Bonds vs Stocks – Know the Difference Between Shares & Bonds

    What Is Hedging In Stock Market

    What Is Hedging In Stock Market

    What is Pre market trading?

    What is Pre market trading?

    How to invest in stock market with little money?

    How to invest in stock market with little money?

    What is a stock market crash?

    What is a stock market crash?

    How to read stock charts for beginners?

    How to read stock charts for beginners?

    What is preference share & types of preference shares?

    What is preference share & types of preference shares?

    IPO and FPO – Know the Difference Between IPO & FPO

    IPO and FPO – Know the Difference Between IPO & FPO

  • JOIN KIM’S
    • Open Membership
    • Win Cash
    • Contact Us
  • COVID-19
No Result
View All Result
The Exclusive Kim's Stockwatch
No Result
View All Result
Home Kims Library

Revision Static and Dynamic Price Limits

July 12, 2020
in Kims Ideas, Kims Library
6 min read
Revision Static and Dynamic Price Limits

Securities Commission Malaysia (SC) and Bursa Malaysia Bhd will temporarily revise the rulings on circuit breaker (CB) guidelines for the FBM KLCI index as well as static and dynamic price limits for KLCI component stocks.

In a joint statement today, the regulators said they will be temporarily reducing the circuit breaker levels from three levels (10%, 15% and 20%) to two levels (10% and 15% only).

Related articles

Wall Street market bubble?

Wall Street market bubble?

February 13, 2021
1.7k
Supermax – Why Still Low & Laggard? Explode This April! A Big-Boom!

PART II – MY LATEST GEMS INVOLVED TO SUPPLY DEEP FREEZERS FOR UK COVID-19 VACCINES!!!

February 12, 2021
1.5k

According to the CB rulings, the first level of the CB is triggered when the FBM KLCI falls by an aggregate of 10% or more but less than 15% of previous market day’s closing.

If the first level is triggered from 9am to before 11.15am and from 2.30pm to before 3.30pm, trading would halt for an hour.

However, if the first level is triggered from 11.15am to 12.30pm and from 3.30pm to 5pm, trading would be stopped for the rest of the session.

Meanwhile, if the second level is triggered — whereby the FBM KLCI falls by an aggregate of or more than 15% of the previous market day’s closing index — trading would be halted for the rest of the day.

For the price limits, the KLCI component stocks that are trading equal or more than RM1 per share, the upper limit price is capped at 30% intraday while the lower limit is set at -15% intraday. In terms of dynamic price limit, upper limit is set at +8%, while lower dynamic limit is capped at -5%.

As for KLCI stocks that are trading less than RM1 per share, the upper limit price is set at +30 sen, while lower limit price is capped at -15 sen. Meanwhile, upper dynamic price limit is set at +8 sen, lower dynamic limit is capped -5 sen. Currently, none of index component stocks are traded at below RM1. 

The two regulators said the revisions will be applicable for a six-month period from July 20, 2020 to Jan 18, 2021.

“The decision for these precautionary measures took into account global market conditions that remain volatile amidst persistent uncertainties due to Covid-19, continued economic weaknesses and the re-escalation of geopolitical tensions.”

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

IS IT BAD NEWS OR GOOD NEWS?

How do you think the market will react to bursa’s new regulation about limits and dynamic pricing?

My answer and personal view’s here, I wouldn’t say if it is good or bad news. I would say that Bursa thinks that the market is too volatile, so ensure any bad news in the world, our share prices will not one day drop drastically, but at least, there is circuits breaker.

THIS IS LIMIT UP AND LIMIT DOWN PRICE

So for 1 day, the price cannot move up more than

1) If the share price is more than RM1, so cannot move up more than 30%
eg. RM 2, maximum price for 1 day is RM2.60

If the price is less than RM1, maximum price is RM1.30

But limit down, last time also 30%, now they reduce to 15%

So if price is above RM1, say RM2.00, one day can only drop RM0.30 ( instead of RM0.60)

So if less than RM1, can drop only RM0.15, instead of RM0. 30

Dynamic limit is say, the last done price is RM1.00., the bid / ask price has very wide spread, because those stocks very thinly traded

So lets say last done price is RM1, the seller is at RM1.09, the order will be rejected by Bursa, so the Brokerage firm must write to Bursa to uplift the dynamic limit, then only you can key in.

But when it comes to the buyer side (bid) , if the last done price is RM1, any orders to sell at RM0.94 will be rejected by Bursa, until the request to uplift the dynamic limit is uplifted.

The dynamic limit used to be 8% for both buy and sell. That is dynamic limit. So e.g “Maybank” need to write to Bursa, then Bursa got to make announcement on its website Www.bursamalaysia.com, then only can be uplifted with.

Dynamic limit is automated by the system. So need to ask Bursa approval to sell. Irrespective whether they are in the component or not. It applies to all the counters.

Dynamic limit up 8% – Dynamic limit down 5%. If less than RM1, Up 8 sen and Down 5 sen.

This limitation’s nothing to do with a quantity of share you holding. It’s all about the prices.

Kindly find this attachment to get more explanation about the rules and dynamic limit. It’s also the old one and the new rule is what already revised above and the latest announcement.

rules_bms_cir_rr2_110411Download
Annexure_1_Rule_Amendments__in_Relation_to_Dynamic_LimitsDownload

Dynamic limit, its keeps moving and it follows the last done price. E.g: Let say last done price KOSSAN is RM12.38, so seller 1st ask is 13.40, so hit dynamic limit. Its about key in up or down. But the price still go limit up 30%. It’s only for key in. Its cannot key up sell above 8%, as long as someone later, come key to sell RM13.36, then can be transacted.

“It is like a ladder, you can climb maximum 2 steps at a time. So when one of the steps fell off, you can’t climb 3 steps at a time, so you got to wait for someone to replace the steps” – Kim

For shares below RM1.00, limit up is 30 sen (flat). For shares above RM1.00,limit up is 30%. So a counter at RM0.10 can limit up to RM0.40 (because flat 30 sen). So in percentage is actually 400%. There’s only 1 limit up or 1 limit down per day.

Lastly, I hope this write-up can help you clear what is your thoughts in your mind about What’s Static & Dynamic Price Limits.

Thank you!

Best regards,

KIM

NOTE : If you enjoy my sharing and want to read more any recommendation and my ideas. Kindly contact me at telegram HERE and Join us at Kim’s Group Trader (KGT).

Share109Tweet68

Related Posts

Wall Street market bubble?

Wall Street market bubble?

February 13, 2021
1.7k

What Is a Bubble? A bubble is an economic cycle that is characterized by the rapid escalation of market value,...

Supermax – Why Still Low & Laggard? Explode This April! A Big-Boom!

PART II – MY LATEST GEMS INVOLVED TO SUPPLY DEEP FREEZERS FOR UK COVID-19 VACCINES!!!

February 12, 2021
1.5k

DATE : 08 February 2021 UCHI TECHNOLOGIES BERHAD (UCHITEC) PART II Current Price : RM3.01 UCHITECH - Confirm Breakout. Support level on RM2.95. Volumes is still...

Supermax – Low P/E & Glove Makers to surge +100% this 2020 year!

MY LATEST GEMS TO SKYROCKET SOON!!!

February 12, 2021
1.5k

DATE : 05 February 2021 UCHI TECHNOLOGIES BERHAD (UCHITEC) Current Price : RM2.93 Target Price : TP1 = RM3.20 TP2 = RM3.50 Call Warrant : UCHITEC-CI ...

Panic-Emotional Trading on State of Emergency?

Panic-Emotional Trading on State of Emergency?

October 25, 2020
2k

What does emergency mean? A situation of national danger or disaster in which a government suspends normal constitutional procedures in...

Supermax – Why Still Low & Laggard? Explode This April! A Big-Boom!

The Super Bull on this glove!!!

October 11, 2020
2k

DATE : 12 October 2020 STOCK  : TOP GLOVE CORPORATION BERHAD Current Price : RM8.81Immediate TP : RM9.40 Target Price : Last target...

Load More
  • Trending
  • Comments
  • Latest
Supermax – Low P/E & Glove Makers to surge +100% this 2020 year!

ONLY THE SMARTEST WILL HOLD AND INVEST IN THIS 2 STOCKS!

June 9, 2020
GLOVE STOCKS – WHAT SHOULD I DO NOW? MY ANSWER IS ..

GLOVE STOCKS – WHAT SHOULD I DO NOW? MY ANSWER IS ..

June 15, 2020
Supermax – Why Still Low & Laggard? Explode This April! A Big-Boom!

GLOVES SECTOR – THIS IS MY REAL PLAN ON PHASE II FY20 – FY21

June 11, 2020
MY NEXT GLOVES COUNTER TO SKYROCKET!!!

MY NEXT GLOVES COUNTER TO SKYROCKET!!!

July 9, 2020
Wall Street market bubble?

Wall Street market bubble?

China Is Reportedly Moving To Clamp Down On Bitcoin Miners

All You Need to Know About This Whole SegWit vs. SegWit2x Thing

Fund Tracking Bitcoin Launches in Europe as Crypto Gains Backers

Wall Street market bubble?

Wall Street market bubble?

February 13, 2021
What’s your sign this year? The ancient Chinese geomancy of feng shui

What’s your sign this year? The ancient Chinese geomancy of feng shui

February 12, 2021
Supermax – Why Still Low & Laggard? Explode This April! A Big-Boom!

PART II – MY LATEST GEMS INVOLVED TO SUPPLY DEEP FREEZERS FOR UK COVID-19 VACCINES!!!

February 12, 2021
Supermax – Low P/E & Glove Makers to surge +100% this 2020 year!

MY LATEST GEMS TO SKYROCKET SOON!!!

February 12, 2021
The Exclusive Kim's Stockwatch

KIM’S Stockwatch is about opportunities created, more often over periods of minutes, hours and days than over weeks or months. By taking a part and joining into our team, there is possibility of earning higher returns.

Follow us

Introduction

  • Overview
  • About Kim
  • Testimonial

Kim's Services

  • Kim’s Group Trader (KGT)
  • Kim’s Investment Club (KIC)
  • Kim’s Prime Trader (KPT)

Join Kim's

  • Open Membership
  • Win Cash
  • Contact Us

New to Market

  • Super Investor
  • I Have Money
  • Let’s Quickie
  • Important Things

Kim's News

  • Today’s Calls
  • Kim’s Ideas
  • FAQ
  • Privacy Policy
  • Terms & Conditions
  • Copyright
  • Disclaimer
  • Contact Us
  • FAQ

© 2020 Kim’s Stockwatch crafted By Kim’s Group

No Result
View All Result
  • INTRO
    • Overview
    • About Kim
    • Testimonial
  • NEW TO MARKET
    • Super Investor
    • I Have Money
    • Let’s Quickie
    • Important Things
  • KIM’S SERVICES
    • Kim’s Group Trader (KGT)
    • Kim’s Investment Club (KIC)
    • Kim’s Prime Trader (KPT)
  • KIM’S NEWS
    • Kim’s Ideas
    • Today’s Calls
  • KIM’S LIBRARY
  • JOIN KIM’S
    • Open Membership
    • Win Cash
    • Contact Us
  • COVID-19

© 2021 Kim's Group by Kim's Group.