KL steps up scripless trading

KL steps up scripless trading

KUALA LUMPUR (AFP): Malaysia's stock exchange said it would launch a trial run within the next two months trading in reduced- sized share-lots, while stepping up a move towards a fully scripless system by 1998.

Nik Din Mohamed Yusoff, the executive chairman of the Kuala Lumpur Stock Exchange (KLSE), said over the weekend the exchange was fine-tuning technicalities to put to test dealings in smaller multiples of the present 1,000-share lots.

"I am monitoring the situation to see how well we can trade smaller lots parallel with the normal 1,000-share lots to allow a better spread and more players in the local market," he told AFP.

Nik Din said the exchange had decided to only allow counters whose shares were already in the computerized central depository system (CDS) and now traded scripless to split into smaller multiples for practical reasons, Nik Din said.

Shares which have not been recruited into the CDS' paperless system would not be allowed to split.

Nik Din said the exchange wanted to include all the companies listed on the KLSE in the CDS in three years.