Thai Bourse To Cut Trading Ceiling, Floor For Penny Stocks

BANGKOK -(Dow Jones)- The Stock Exchange of Thailand Wednesday said it will cut the daily trading ceiling and floor for stocks priced between THB0.10 and THB1 to 30% from 100%, effective Dec. 2.

The move is aimed at reducing the price volatility of these stocks, the exchange said in the statement Wednesday.

The ceiling and floor for stocks priced less than THB0.10 will remain at 100% of closing prices the previous day, it said.

The daily price movement of stocks priced over THB1 are capped at 30% for either direction.

The bourse will also from Dec. 2 put a ceiling on the price of initial public offering shares. It won't allow prices to more than treble from the IPO price, while the floor will be set at half the IPO price, the statement said.

IPO prices are currently allowed to move freely upon the stock's debut.