Bursa Malaysia has announced that effective August 3, 2009, the trading halt of stocks to disseminate material announcements by listed companies will be shortened to one hour from one trading session currently.
This will benefit listed companies as there will only be a minimal disruption of their securities from being traded, the exchange said in a statement.
Investors will also benefit from more trading opportunities as the suspension hours are significantly reduced. A trading halt refers to a temporary halt in the trading of listed securities upon the release of information that has material effect on the price of the securities.
Bursa Malaysia CEO Datuk Yusli Mohamed Yusoff said shortening of the halt period will enhance market efficiency as trading interruption is kept to the minimum, and both the issuer and investor will benefit from being able to trade with minimal interruptions.
Currently, Bursa Malaysia requires listed companies to make material disclosures to the exchange and these announcements are posted on Bursa Malaysia’s website, ensuring investors have continuous access to corporate information.
On 3rd August, the new suspension time will be as follows:
* For materials announcements that are made before the trading period starts (9am) as well as between 9am and 11am, a trading halt will be imposed for 1 hour from the time the material announcement is made. Order entry and modification will be allowed during this time and Theoretical Opening Price (TOP) will be calculated, but no matching of trades will take place.
* For material announcement that are released after 11am, the trading halt will be until the end of the trading session at 12:30pm. Similarly, where the material announcement is released after 3:30pm, the trading halt will be until the end of the trading session at 5pm. Order entry and modification is not allowed during this time, and TOP will not be calculated.
* For material announcements that are released between 1:30pm to 2:30pm, the trading halt imposed will be for 1 hour from 2:30pm. Order entry and modification will be allowed during this time and TOP will be calculated, but no matching of trades will take place.
* Where the material announcement is released between 2:30pm and 3:30pm, a trading halt will be imposed for 1 hour from the time the material announcement is made. Order entry and modification will be allowed during this time and TOP will be calculated, but no matching of trades will take place.
* A trading halt will not be imposed where the material announcement is released during the window period from 12:30pm to 1:30pm.
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