The rise of Straits Times Index hasn’t interested me that much, despite crossing and staying above the psychological threshold of 3,300 points lately. Something else did, though.
Remember this post from almost a year ago? MAS and SGX has issued an official response regarding the review of securities market structure and practices. You can check out the entire news release in the link below, but the only one I’m interested in is this!
To improve retail investors’ access to a broader range of listed securities, particularly blue-chip stocks, SGX will reduce the board lot size for securities listed on SGX from the existing 1,000 shares to 100 shares in January 2015. SGX will announce details of this initiative by end August 2014.
Investing should be for everyone – even when they have just a little cash to spare every month. While we await more details, this means that SPDR STI ETF will likely be available at 100 lot size. With lower expenses and higher liquidity, will this spell the end of Nikko AM STI ETF? The very reason I use it is because of its smaller lot size. Also, we are looking at ABF SG Bond Index Fund costing only $100+ per lot in future! One important thing to take note of is how brokerage fees are going to respond to this change. Let’s hope Standard Chartered will maintain their fees at 0.2% and we’ll be ready to rock come January 2015!