SGX 10-Share Minimum: DBS, Jardine Matheson Top Volume
The Singapore Exchange's new 10-share minimum for 11 stocks drove over 20,000 trades in smaller lots on Monday, surpassing traditional 100-share volumes.
SGX Lowers Minimum Share Lots
The Singapore Exchange (SGX) commenced trading in reduced board lots for an initial group of 11 stocks on Monday (Oct 5). This initiative lowered the minimum transaction size for these securities from 100 shares to 10.
The selected stocks include Singapore's three largest banks – DBS, OCBC, and UOB – alongside Great Eastern Holdings, Haw Par Corporation, Jardine Matheson Holdings (JMH), Keppel, Prudential, SGX itself, and Venture Corporation. This change aims to improve accessibility and trading flexibility for higher-priced equities, as stated by SGX.
DBS and JMH Lead Initial Trading
On the debut day, 10-share lots emerged as the most frequently traded size across most of the actively participating stocks. DBS led this trend with approximately 5,000 such trades, according to Bloomberg trade data analysed by SGX. Jardine Matheson Holdings (JMH) recorded the highest adoption rate, with roughly one-third of its total trades executed in 10-share lots.
For both DBS and JMH, which are among the highest-priced stocks in the group, 20-share lots were the second most popular trade size.
Increased Turnover in Smaller Increments
Overall, the 11 stocks saw more than 20,000 trades executed in 10-share lots on Monday, exceeding the over 13,000 trades conducted in traditional 100-share lots. SGX data indicated that just over half (55 per cent) of all trades for these stocks were in sizes below the former 100-share minimum.
Furthermore, eight of the 11 stocks recorded a higher average daily turnover compared to Oct 2, the last trading day of the preceding week. Keppel was noted as an exception, with approximately 1,000 trades each in both 100-share and 10-share lots.
Enhanced Flexibility for Investors
The SGX stated on Tuesday that the reduction in board lot sizes provides investors with greater flexibility. This allows for more precise capital deployment, enabling them to build positions, average costs, and rebalance portfolios in smaller increments.
For example, an investor could accumulate a 100-share position in DBS through multiple 10-share transactions throughout the trading day, rather than a single large trade. Despite softer market-wide activity, SGX noted that liquidity for these stocks remained broadly stable, with most constituents showing higher turnover.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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