Friday, August 1, 2014

MAS to remove SGX shares less than 20 cents

Sounds strange, but here is the full article, "MAS, SGX to go ahead with proposed stock market reforms, sets minimum trading price" from CNA.

Since 20c per share will be the minimum, 1 lot of a thousand shares would now set back investors a minimum of $200 to invest into a single lot. 

 
Currently, I only have 3 stocks of my simple portfolio of 10 stocks which will be affected by this ruling.

Most likely, I foresee many of these tickers would consolidate their shares to firm them up to be over 20c a share. In fact, I think it is possible that this trend will move towards encouraging other shares which are lowly priced nominally to consolidate their shares as well, so they will be safely away from the 20c mark.

I will be looking to see what the companies I own that are affected will do about this. I think now would be a good time to completely sell off the weaker stocks in your portfolio that are under this 20c threshold. It is a good excuse to look at your stocks fundamentals again and question yourself why you own them in the first place.

However, it could also be a great opportunity to pick up odd share lots from investors that want to divest out of their small stocks positions.


Personally, I already know which companies I will cut loose and which ones I will start collecting more shares of!

2 comments:

  1. As per SGX stock trading news, MAS is going to remove shares with price less than 20 cents.

    ReplyDelete
  2. The underperforming sector was the FTSE ST Technology Index, which slipped 0.95%. Silverlake Axis shares declined 1.02% and STATS ChipPAC declined 1.08%.

    ReplyDelete

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