SGX lowers stock lot sizes to boost retail participation

The Singapore Exchange lowered the lot size requirement for certain high-priced local stocks, allowing small investors to purchase shares in lots of 10 instead of 100, starting on October 5. This change was part of the exchange's effort to increase retail investor involvement in the market. However, reports noted that institutional selling quickly countered the effect of the smaller lot sizes.

The reduction in lot sizes was intended to make stocks cheaper for small investors to buy. Although the stocks mentioned made up 35 per cent of SGX trading in the first half of the year, the immediate market action by large investors meant the change did not significantly alter the trading dynamics of the banks.

The Monetary Authority of Singapore allocated funds to Amundi, while the Singapore Exchange implemented smaller board lot sizes and listed Jardine companies.