Wednesday 2 July 2014

Attracting retail investors: mindset change needed


Retail investors are like any others in the market, whether big or small - they will trade if they think they can make money 

EVER since the penny segment crashed last October, the local stock market has suffered from a withdrawal of retail participation. Volume today is about half what it was before the crash, prompting the release of a consultation paper from the authorities on ways to strengthen the market in the wake of that collapse.

The measures recommended - but not yet implemented - are all sound and should enhance the market's infrastructure in no small measure, but as yet there has been no discernible effect on small investor presence or sentiment. Despite the fact that a record number of Central Depository (CDP) accounts were opened in the past 12 months, actual trading remains depressed.

It's a perplexing problem which thus confronts the Singapore Exchange (SGX) - what should be done to bring retail players back?

Retail investors are like any others in the market, whether big or small - they will trade if they think they can make money. Ergo, it has to be that the bulk of them are absent today because they believe they cannot make money, or worse, that investing/trading in Singapore stocks means losing money.



4 comments:

  1. Whoa!

    LOL!


    Who is really concern of not making money?


    ReplyDelete
  2. Since when ikan billis are important (taken care off)? Ikan billis are important only for the bigger fishes like sharks. To survive in the SGX EXC., it's better to be a REMORA. ikan billis sure die one way or another.

    ReplyDelete
    Replies
    1. SGX now realized that collecting many pennies from small boys is not bad idea.

      Delete
  3. The best person to ask is Mr Coconut. LOL!

    ReplyDelete