Tuesday 7 January 2014

Dynamic Limit by Bursa Malaysia

Just learnt today that besides limit up/down, Bursa has introduced dynamic limit recently whereby the limit of share price fluctuation from the last done price is kept at +/-8% or +/- 8sen for stock with share price below RM1.

One still can key in order but it will be automatically cancelled by Bursa.

You will see something like this under order properties

So we won't see again something like the 30% limit down that happened on several stocks such BKAWAN, TDM, HSPLANT, CBIP that happend during the closing on 21 June 2013.


  1. You will still be able to see prices fluctuating at the end.The 8% limit is only applicable to prices during normal trading hours,ie,9:00am-12:30 and 2:30-4:45pm.

  2. i think it applies to share above RM1 too right?

  3. 8% dynamic limit is too low for structured warrants and warrants, which is very normal for price to fluctuate beyond 8%. The 8% limit has rendered many structured warrants unable to be traded, kills off liquidity,and totally defeats the purpose of approving the products to be listed in the first place.

  4. This dynamic limit could be set bcos the shares traded is very low/inactive ie daily vol is almost nil and the shares are tightly controlled ie free float of less than 25 %