SGX move to cut board lot size expected to boost investor interest

Observers say change could make it easier to invest in blue-chip stocks, boost liquidity

- Timothy Goh

A move by the Singapore Exchange (SGX) to reduce board lot sizes is expected to make blue-chip stocks more affordable for retail investors.

Observers told The Straits Times that the change - which will reduce the board lot size from 100 units to 10 units for securities above $10 - will also broaden investor participation on the SGX and boost liquidity.

A board lot is the standard minimum number of shares you must buy or sell in a single transaction on an exchange.

The move is part of a slew of measures proposed by the Monetary Authority of Singapore's (MAS) Equities Market Review Group in its final report released on Nov 19.

SGX will consult on the proposal to reduce the board lot size of higher-priced securities, while keeping existing free float requirements, in the first quarter of 2026.

Mr Paul Chew, head of Phillip Securities Research, said the change could make it cheaper to invest in blue-chip stocks, provided their share price remains above $10 at the time the new rule is implemented.

Some examples of stocks trading above $10 at the time of writing include bank stocks such as DBS Bank, UOB and OCBC Bank, as well as Jardine Cycle & Carriage and Venture Corporation.

“If the rule is approved and DBS’ stock price qualifies, the minimum investment would be significantly reduced. Reducing board lot sizes widens investor participation by making shares more affordable.”

Mr Isaac Lim, chief market strategist at trading platform Moomoo Singapore, said the move was a “long time coming”.

He noted that the most expensive counter on the Straits Times Index - Jardine Matheson Holdings - currently trades at about US$63 a share, which means that with the current standard lot of 100 shares, an investor would need about US$6,300 to take a position in the stock, before administrative fees.