General Announcement::SGX unveils campaign to help investors benefit from smaller board lots

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
13-Jan-2015 17:23:45
Status
New
Announcement Sub Title
SGX unveils campaign to help investors benefit from smaller board lots
Announcement Reference
SG150113OTHRA9BP
Submitted By (Co./ Ind. Name)
Carolyn Lim
Designation
Vice President
Description (Please provide a detailed description of the event in the box below)
2014 ended on a positive note. The Straits Times Index (STI) delivered a 9.5% total return, above the 10-year average of 8.7% per annum. More investors are investing. In the past year, 71,043 new accounts were opened, 12% more than the year before. More than half of the 1.7 million CDP accounts open have investments today.

From 19 January 2015, the minimum lot size in the securities market will be reduced from 1,000 to 100. With smaller board lots, higher-priced stocks will become more affordable to investors. For example, investors will be able to buy the three largest local bank stocks, for a minimum investment sum of about S$5,500 (*based on share prices on 9 January 2015) one-tenth of the sum required currently. The 30 companies which make up the STI have stable cashflow, good growth records, consistently pay dividends, and tend to be higher priced. Reduced board lots will enable investors with less investment funds to build a diversified portfolio more effectively, giving them more flexibility to manage their exposure to different sectors, while continuing to choose from the more than 800 stocks, REITS and business trusts listed in Singapore.

To reach out to new, active and inactive investors and to ignite their interest in investing, SGX today announced that it will launch a campaign via public roadshows, investment fairs and digital marketing to educate the public on the benefits of smaller board lots.

Complementing these efforts for retail investors, SGX is working with Singapore brokers to encourage their Trading Representatives (remisiers) to engage and better support their clients. As part of the campaign, analysts from the retail brokers will provide frequent daily market updates and analysis of stocks on MediaCorp s 938LIVE radio programmes from 12 January 2015.

We welcome the support of OSK-DMG Securities, CIMB Securities, Maybank Kim Eng Securities and OCBC Securities, which will be introducing various promotions for retail investors during this period.

Chew Sutat, Executive Vice President, SGX, said, We hope the introduction of smaller board lots, coupled with the support of our partners the Securities Investors Association of Singapore (SIAS), brokers and Trading Representatives will help us to reach out to investors and encourage them to take full advantage of the many attractive investment opportunities and strong performance of the Singapore market.

This is a long-awaited initiative that will enable retail investors to have easier access to the securities market to help build their wealth. With easier access, there is a heightened need for investors to educate and better equip themselves to identify the right stocks for their investment objective and risk profile, said David Gerald, President and CEO, SIAS.

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Attachments

20140113 SGX_unveils_campaign_to_help_investors_benefit_from_smaller_board_lots.pdf
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