The conversion of these counters into standard board lot of 100 units marks the second stage of the implementation plan for the trading of all securities on the KLSE in standard board lot of 100 units. The implementation process which is conducted in stages is expected to be completed by June 2003. KLSE will announce the implementation of the conversion of the remaining sectors of the Main Board in due course.
The first stage of the implementation to standardise board lots at the KLSE to 100 units was successfully completed on 7 April 2003. The first stage involved 350 counters from all sectors on the Second Board. With the completion of stage one, all counters on the Second Board and MESDAQ Market are being traded in board lot of 100 units.
Deputy President, Strategy & Development of the KLSE, Abdul Hamid Sheikh Mohamed said that whilst it is still too early to fully evaluate impact of trading in board lots of 100 units on the Second Board, indications so far, have been positive and encouraging.
"For the first two weeks of trading in 100 units, average daily volume on the Second Board (excluding Direct Business Transactions) increased to 33.2 million units from 25.5 million units in the two weeks prior to the conversion. This marks an increase of 30.2% in volume traded on the Second Board. Trading activity on the Second Board as a percentage of total trading activity has also increased over the same period, from 14.9% before conversion to 20.8% after conversion.
"Cumulative trading value for the Second Board counters rose to RM373.7 million in the two weeks after the conversion to standard board lot of 100 units, compared to RM291.7 million in the two weeks prior to trading in 100 units, recording an increase of over 28.1%," Abdul Hamid said.
Since 7 April 2003, all Initial Public Offers (IPOs), whether on the Second Board or Main Board, will also be traded in board lot of 100 units. Only one IPO is scheduled for the next two weeks:
| No. | Name Of Company | Date of Prospectus | Board | Proposed Listing Date |
| 1 | NTPM Holdings Berhad | 17 March 2003 | Main Board (Consumer Products) |
25 April 2003 |
The list of all 108 counters on KLSE's Main Board under the Trading/Services sector which will be traded in board lot of 100 units effective Monday, 28 April 2003 is attached.
KLSE will continue to work with industry participants, namely the brokers, in ensuring the successful conversion of securities into standard board lot of 100 units across the various implementation stages.
"The move to standardise board lots on the KLSE came after close consultation with industry participants. KLSE will continue to monitor the various implementation stages to ensure the successful conversion of all counters into 100 units and ensure that the market remains fair and orderly," Abdul Hamid said.
For more information on the standard board lot, investors and other market participants are advised to read the frequently asked questions (FAQs) related to standard board lot, available on the KLSE website www.klse.com.my. The FAQs are available in both English and Bahasa Melayu. Investor's guide brochures on "Standard Board Lot of 100 Units" in English, Bahasa Melayu and Mandarin have been also be distributed through the network of KLSE member companies nationwide, Authorised Direct Members (ADMs) and Balai Maklumat BSKL.
The standard board lot will make investment in securities more accessible and affordable for all investors. The standard board lot will enhance investor participation in high priced securities. Enhanced investor interest and participation will result in a more efficient price discovery and sustained market liquidity. The smaller board lot will help reduce holdings of odd lots. With the standard board lot of 100 units, many of these previous odd lot shares will be more marketable. Given the emphasis on shareholder distribution, the standard board lot will also enhance the shareholding spread of securities.
KLSE will announce and update the market regularly on the various stages involved in the standardisation of board lots to allow sufficient time for investors, dealers and other market participants to make the necessary preparations.
