- The Alert List includes six companies at the end of Q1 2020 whose average price was less than PLN 0.10 in the last three months
- The Lower Liquidity Zone includes stocks of 50 issuers
- It is the first update of the Alert List and the Lower Liquidity Zone under the new rules that took effect as of 1 January 2020
- The objective of the modifications is to improve the rules applicable to stocks trading at a low liquidity level and penny stocks and to align the rules with the new tick sizes on the equity market
The first classification of companies in the Alert List on the Main Market in Equities under the new rules took place on 27 March 2020. Instead of 34 companies previously on the Alert List, only six stocks were put on the new list. Stocks of 50 companies were put in the Lower Liquidity Zone (previously: 51 companies). The GPW Management Board decided to change the rules for the classification of companies listed on the GPW Main Market in the Alert List and the Lower Liquidity Zone in October 2019. The changes took effect on 1 January 2020.
“We have decided to introduce the new rules for the classification of companies in the Alert List following the introduction of new tick sizes for shares on GPW (with a precision of four decimal places), which took effect in March 2019 enabling more effective valuation of penny stocks. To address investors’ expectations, we have decided not to suspend trading in those stocks which are put on the Alert List for at least a sixth time. As of 1 April 2020, such stocks will be listed in the single-price auction system with one fixing per week. The new rules of classification of companies in the Lower Liquidity Zone support the liquidity of trading and price formation of stocks without having much impact on the number of stocks put in the Lower Liquidity Zone,” said Piotr Borowski, Member of the GPW Management Board.
According to the new rules, the GPW Alert List includes those stocks whose average price understood as the arithmetic mean of closing prices in the last three calendar months is less than PLN 0.10 (previously: PLN 0.50). Trading in stocks put on the Alert List for at least a sixth consecutive time (including previous classifications under the previous rules) will no longer be suspended. Such stocks will be listed in the single-price auction system with one fixing per week (on Wednesdays).
As of 2020, stocks are put in the Lower Liquidity Zone if the number of transactions in a stock is less than five transactions per trading session at more than one half of all trading sessions in the last three calendar months preceding the periodic verification (excluding the last three trading days of that month of the verification). Issuers of stocks trading at a low liquidity level can still join the Liquidity Support Programme.
To see the up-to-date Alert List, click here
To see the up-to-date Lower Liquidity Zone, click here
