By chance I run into the following share buyback by China Stationary:
China Stationary bought 100 shares at a price of RM 0.13 for a total amount of RM 54.01.
In other words, the shares cost only RM 13.00, the commission however a whopping RM 41.01!
In one word: madness.
If Bursa Malaysia actively wants to encourage more retail investors to participate (many of whom might trade for smaller amounts), they really should solve this issue.
In my previous blog posting I gave two simple solutions:
- either raise the minimum board lot size for shares trading at lower prices (in Hong Kong for instance penny stocks go in lots of 10,000 shares)
- or lower the minimum brokerage for these small orders.