Otherwise you could get 1,000 fire resistance effects and they'd just asymptotically trend towards, but never reach full resistance - which doesn't make sense IMO
Form a game balance point of view it makes sense.
Suppose you have three items each with 50% magic resistance to something
First enchantment: 50% of resistance
Second enchantment: 50% of the remaining vulnerability = 75% total resistance
Third enchantment: 50% of the remaining vulnerability = 87,5 total resistance
...and so on.
See where am I getting to?
You'll have pretty high resistance without creating godlike characters that may unbalance the game in the long run.