1st Aug 2014 - Singapore to launch market reforms, sets minimum trading price

[CityFarmer]

SGX does not have a moral responsibility to eliminate speculation. Speculators are an important market participant, like it or not. SGX is to keep an orderly, cheap and transparent market for all kinds of market participants, be it speculators or "investors".

It is the SGX interest to curb excessive speculation. Excessive volatility due to the speculation, might deter participation, both retail and institutional investors, thus lower profit over longer term.

(vested in SGX)

[dzwm87]

The MTP (Minimum Trading Price) of 20.0 cents is an interesting one.

If the share price is below but close to 20.0 cents ( say around 17, 18, 19 cents) - what would be the best options for companies to comply with the new MTP requirement - "boost share price" or "consolidation of shares" ?

They don't need to achieve exactly 20c. For cases like 17c, they can do a 2-for-1 consolidation and the shares will trade at 34c, well within the MTP limit.

[CityFarmer]

The MTP (Minimum Trading Price) of 20.0 cents is an interesting one.

If the share price is below but close to 20.0 cents ( say around 17, 18, 19 cents) - what would be the best options for companies to comply with the new MTP requirement - "boost share price" or "consolidation of shares" ?

They don't need to achieve exactly 20c. For cases like 17c, they can do a 1-for-2 split and share trades at 34c, well within the MTP limit.

Split? You means reverse-split, or consolidation?

Consolidation seems the more secure and easy solution to meet the requirement. In fact, companies are doing it now already, in preparation for the requirement.

[dzwm87]

You are right: share consolidation. Was a typo!

[specuvestor]

The correct action should be focus poor-quality counters or dubious companies which include S-chip. SGX and MAS should drilled into their financial figure and banks to see if any irregularities in it.

SGX does not have a moral responsibility to eliminate speculation. Speculators are an important market participant, like it or not. SGX is to keep an orderly, cheap and transparent market for all kinds of market participants, be it speculators or "investors".

It is a balance. If china products always sucks, it will affect the perceptions of the products Made In China even though we can say it is buyers beware.

But OTOH we need to increase surveilance without increasing too much regulatory burdens on capital raising, as we discussed in this thread:
http://www.valuebuddies.com/thread-4469-...l#pid88392

[GPD]

What is the rational behind that MTP of 20cts? Even if coy consolidate shares, if their business turned sour and investor/traders dumped the shares, it might still drop to 20cts. Worse case tons of sellers at 20cts but no buyers. In the end it might still hit whatever floor price SGX set. I don't see any difference between 0.1cts and 20cts. It doesn't change the fundamental of the biz.

[Behappyalways]

SGX should have look into their rules and regulations instead. The 'loopholes' in S-chips (how to make the directors accountable), significant shareholders not making a offer for delisted counters (under watchlist). These are a major part of the reasons why people 'give up' on Singapore stocks. Where are the rules to protect minority interests?

Take for example a barely profitable company with high NTA. Significant shareholders could 'make' it loss-making for consecutive three years to get it delisted. Then the significant could make a low offer for the company. What can the minority shareholders do? Stay vested in a delisted counter?

[greengiraffe]

In my opinion, SGX is only interested with their casino approach. They are only concern with volume and velocity of the market - very pro-business and no concerns over the welfare of trading representatives.

Even a more vibrant HK breaks for lunch. Lunch breaks are essential for networking and possible discussion for investment strategies.

Anyway, one need not look further than the poor quality of new listings that replace the high quality delisted ones.

After the demise of the penny stocks which are largely underpinned by unwanted, non-listable high risks mining assets unwelcome on ASX, we are continuing to see more of such listings here.

SGX is simply a backwater these days for crappy companies, if investors are not carefully, more innocent wealth will evaporate like what had historically happened like the CLOB saga, internet bubble bursting and even S-Chips...

Sad but true
GG

[CityFarmer]

SGX is simply a backwater these days for crappy companies, if investors are not carefully, more innocent wealth will evaporate like what had historically happened like the CLOB saga, internet bubble bursting and even S-Chips...

Sad but true
GG

Jialat... CLOB saga and Internet bubble busting also the faults of SGX. If Argentina default triggers the next crisis, may be it will be added to the fault-list.

(vested in SGX, thus biased)

[greengiraffe]

SGX is simply a backwater these days for crappy companies, if investors are not carefully, more innocent wealth will evaporate like what had historically happened like the CLOB saga, internet bubble bursting and even S-Chips...

Sad but true
GG

Jialat... CLOB saga and Internet bubble busting also the faults of SGX. If Argentina default triggers the next crisis, may be it will be added to the fault-list.

(vested in SGX, thus biased)

Hi Buddy,

I m speaking my mind from an ex-remiser perspective. SGX has nothing to help the industry with their mentality over the years... Its always the big fish that got away while the ikan bilis really suffered historically.

The current state of the market is due to huge losses suffered by the man in the street due to lack of knowledge on their part but also the universe that is being presented to them.

Till today, I still cannot understand why shouldn't there is a decent lunch time for dealers/remisers. Volumes hasn't picked up at all despite non stop trading. Conversely, i think more hidden stress has been added to dealers/remisers for not being able to have peace during lunch breaks.

Whoever think of such inhumane way of treating their own compatroits still don't have the humanity to even apologise... sad... I stand by my words and I mean it - dealers/remisers are still human and deserves to be treated like human beings with some basic human rights - its a peaceful lunch that they forked out hard earned $ to pay for and they should be able to enjoy it.

Having said all these, I m not casting Argentina crisis on SGX... you can verify my original posts. The CLOB, the internet bubble, the S-Chips and the upcoming mining and resources rubbish will keep depleting the wealth of the innocents. Otherwise, why would you think valuebuddies is such a well followed forum - cause we upheld high quality postings...

GrumpyGiraffe
GG