Bursa Trade to start July 28 2008

With effect from July 28 2008, Bursa's old trading system "SCORE" will be phased out and replaced by a new system, Bursa Trade.

Among the many new features, I wish to highlight to you some of the important ones especially if you send your orders via internet :

Trading Sessions

1) 8:30-9:00am-pre-opening keyin where at 9am-a final theoretical opening price(TOP*) will be determined
2) 9:00:01am-12:15pm-continuous trading
3)12:15:01-12:20pm-keyin is permitted to determine final theoretical closing price(TCP*) at 12:20pm
4)12:20:01-12:30pm-all orders from now must be done at the TCP
5)2:00-2:30pm-pre-opening keyin where at 2:30pm-a final theoretical opening price(TOP*) will be determined
6) 2:30:01-4:45pm-continuous trading
7)4:45:01-4:50pm-keyin is permitted to determine final theoretical closing price(TCP*) at 4:50pm
8)4:50:01-5:00-all orders from now must be done at the TCP

Others

1) "First to key in, First to get done" basis
2) careful not to key in "market buy or sell" as the mistake could be very costly
3) careful with the selling of odd lots (don't over sell) as there will not be any buyin. Any undelivered shares will be cash settled calculated as follows: 10 bids higher of closing price before delivery + RM100.00
4) odd lots can be partially sold and we can view 5 best quotes for buyers and sellers(similar with normal share prices quotes)
5) odd lot price quotes follow underlying normal share price quotes
6) enhanced surveillance by Bursa-watch out for intentional price fixing during the 5 minutes allowed

* Uses TOP/TCP algorithm and continuous matching mechanism based on price and time priority.

We were told that Bursa will advertise the new trading rules in major newspapers prior to its implementation. If you need further details, please log on to BursaTrade or email me any time.

* Templeton's Mark Mobious sees good bargain after stock markets in China and India declined. The CSI 300 index is valued at 21x reported earnings while the Sensitive Index is at 14x....

* South Korea's Finance Minister warns that the country's economy is going into a serious financial crisis soon although exports are holding firm. Indicators from investment, consumption, job growth and current account are at worrying levels. No wonder Bloomberg reported that Korean won seems to be on the losing streak despite government intervention. The won was last traded at 1,016 to the dollar (please refer here for previous discussion on won).

* BT: UBS(world's 2nd largest currency trader) expects ringgit to decline this week if Bank Negara refrained from raising interest rate amid accelerating inflation. Inflation for June/July are expected to be at the 7% region. So far, Indonesia, Philippines, Vietnam, India and Thailand have raised their interest rate to combat inflation.

* ThomsonFinancial: An unidentified personnel from China Banking Regulatory Commission said "The tight credit policy will not change in the 2nd half". This statement was made following earlier reports of looser credit policy. Also, to note RMB continues to fall for the 3rd day as the Chinese Authorities called for slower appreciation of the currency and thus ending a forgone conclusion that the RMB is on a "one-way bet".(please refer here for previous discussion).

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* The Standard: "Through train to Hong Kong seems to be stucked at the station". The Chinese authorities are not in favour to allow its people to invest in Hong Kong just yet amid ongoing volatility in global financial markets. A dampener for the Hong Kong stock market!!

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* Agencies: India's Finance Minister says economy grew at 9.1% for fiscal period 07/08 while it is estimated to grow 7-8% in the current fiscal period. The Sensex was up 2.5% today at noon time.