Singapore Exchange To Reduce The Current Board Lot Size

This is a good piece of news. Starting in January 2015,  the Singapore Exchange will reduce the board lot size for listed stocks from the current 1,000 shares to 100.

What does that mean to a retail investor like me? 

Purchasing of blue-chip stocks like DBS Bank will now be more affordable and it allows me to slowly build a good blue-chip stock portfolio. For example, if I intended to buy DBS Bank shares at S$18.31 (current price as of Aug 1) a piece, I will now only need S$1,831 to acquire one lot, compared to $18,310.

Certain blue-chip stocks were out of my reach prior to this announcement. From next year, I will start to pay attention to the more expensive stock counters. Some of these blue-chip stocks provide good capital gains and dividends. 

I hope there will be more retail investors building up their retirement portfolio.