Brief summary of what is happening....
- 14.11.2011 - The share price moves to new high of RM2.14 from merely 8.0 sen (closing price on 11.10.2011) in 1 month. For few market days, it touched the "upper limit".
- 15.11.2011 - Finally Bursa suspense this counter for 1 day and designate it as "Designated Securities"
- 16.11.2011 - Opening first transaction already touched the "lower limit" at RM1.50
- 17.11.2011 - Opening first transaction also touched the "lower limit" at RM1.05
- Tomorrow 18.11.2011 - ???
You can see from below image, the selling pressure is so huge.
What is "Designated Securities"?
The trading of the securities will be declared as "Designated Securities" upon occurrence of a situation of excessive speculation as well as the existence of abnormal trading patterns. The decision to designate a securities also takes into account the interest of ensuring a fair and orderly market for the trading the affected securities.What is "Upper Limit"?
With the designation, trading in the securities continues but will require payment upfront before buying and a free balance of securities before selling.
"Upper Limit" means the highest price at which the securities can be traded from a Reference Price in a trading session as stipulated by the Exchange. Usually is 30% above previous closing.
So, what is the point of this post?
Don't touch the "speculative counter" with no "fundamental" - as you can see, without fundamental, a share can FREE FALL from RM2.13 to RM1.05 in two market days.