The first stage implementation today involves the conversion of 350 counters listed on the Second Board to trade in standard board lot of 100 units.
The first stage implementation is part of a four-stage implementation plan to standardise board lot at 100 units. The phased implementation is to ensure the maintenance of an orderly market and is expected to be completed by June 2003. With the completion of the first stage implementation, all securities listed on the Second Board and MESDAQ Market are traded in standard board lot of 100 units.
Deputy President, Strategy & Development of the KLSE, Abdul Hamid Sheikh Mohamed said that KLSE will continue to monitor the progress of trading in standard board lot closely.
"There were minor glitches experienced today by stockbroking member companies which were immediately rectified.
"We will make the necessary adjustments to ensure that system and operational efficiency continue to be achieved in the trading of securities in standard board lot of 100 units.
"Indeed with continued support and co-operation from stockbroking member companies and market participants, we look forward to complete the rest of the implementation plan for standard board lot," he said.
Magni-Tech Industries Berhad (MAGNI), a Second Board Company as at today Monday, 7 April 2003 is due for a transfer to the Main Board with effect from Tuesday, 8 April 2003 and will continue to be traded in standard board lot of 100 units after its transfer to the Main Board.
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 are also available through the network of KLSE member companies nationwide, Balai Maklumat BSKL and Authorised Direct Members (ADM) since 1 April 2003.
The standard board lot of 100 units will make investment in securities more accessible and affordable for all investors. It 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 next implementation stages involved in the standardisation of the board lots to allow sufficient time for investors, dealers and other market participants to make the necessary preparations.
