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Retail investors to get access to wider range of stocks

Starting in January 2015, the Singapore Exchange will reduce the board lot size for listed stocks from the current 1,000 shares to 100. 

SINGAPORE: Retail investors will soon have access to a wider range of stocks, including the blue-chips.

Starting in January next year, Singapore Exchange (SGX) will reduce the board lot size for listed stocks from the current 1,000 shares to 100. This is one of several new initiatives announced by the SGX and the Monetary Authority of Singapore (MAS) on Friday (August 1).

This means investing in blue-chip stocks like Singapore Airlines or DBS Bank will now be easier. From January 2015, the SGX will reduce the board lot size to 100 shares. For example, if you intend to buy shares at S$18 a piece, you will need just S$1800 dollars to acquire one lot, compared to S$18,000 currently. MAS and SGX have said that more details will be announced by end-August.

"Retail investors, especially the retirees, do find it difficult to invest in good quality companies, blue chips that provide better opportunities and good dividends,” said Mr David Gerald, President and CEO of Securities Investors Association Singapore. “It is a good move; after all in other jurisdictions citizens are able to build a portfolio little by little."

In addition, the MAS will also proceed with five new measures to improve the securities market in Singapore after its public consultation.
 

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