MAA Holdings Bhd Hit Limit Down Today
MAA Holdings Bhd(MAA) hit the limit down today and closed at RM0.725 on news of its insurance unit being sold to Zurich Insurance Co Ltd for some RM344mil.
If this deal go thru, MAA Holdings Bhd will be classified as “affected listed issuer” under stock-exchange rules, which means it must “regularize” its financial condition or risk being delisted.
The price drop 30 percent to RM0.725 which is the steepest drop on record.
In the limit down, there’ll no buyer at all at the buyer queue
This counter was the most actively traded stock with 78.23 million shares changing hands.
According to amendments to the trading manual by Bursa Malaysia which take effect on 18 April 2011, a stock that price above RM1.00 can have limit up or limit down up to maximum 30%.
Existing Stock:
Stock Reference Price Above RM1.00
Limit Up: 30%
Limit Down: 30%
Stock Reference Price Below RM1.00
Limit Up: 30 sen
Limit Down: 30 sen (subject to minimum price of 0.5 sen)
New Listing including IPO:
Stock Reference Price Above RM1.00
Limit Up: 400% (5 times Reference Price)
Limit Down: 30%
Stock Reference Price Below RM1.00
Limit Up: *400% or 30 sen whichever is higher
Limit Down: *30 sen (subject to minimum price of 0.5 sen)
* Example: If the reference price is RM0.06, the limit up price will be RM0.36 (RM0.06 + RM0.30) and limit down price will be RM0.005 (system minimum price).
I’m surprise when someone can post at Facebook asking for opinion whether to buy this stock
Would you dare to buy stock that was Limit Down?