To The Moon

🌟🌟🌟$SGX(S68.SI)$  is rolling out a raft of new measures.  They include a reduced board lot size and a dual listing highway with Nasdaq.  The aim is to revitalise its equities market.

The Bull Case: Why Invest in SGX and why are these changes promising :

Lower board lot size to attract retail investors :  The plan to reduce the board lot size from 100 to 10 units for stocks over SGD 10 is a major win for investors.  This dramatically lowers the entry barrier for expensive bluechip stocks like $DBS(D05.SI)$  $OCBC Bank(O39.SI)$  and even SGX.

By making these stocks more affordable SGX hopes to increase trading activity and liquidity where more investors can participate, potentially leading to a more vibrant and active market. 

Smaller lot sizes allow investors to build a more diversified portfolio with less capital. 

Moreover attracting a new generation of retail investors could help address long standing concerns about market liquidity. 

Nasdaq Dual Listing to attract growth companies :

The landmark partnership with Nasdaq scheduled for mid 2026, is a strategic move to address the exodus of high growth tech companies from Singapore's market.  

The new Global Listing Board will offer a streamlined path for companies with over SGD 2 billion market capitalisation to dual list on both exchanges using a single set of documents. 

This could attract high growth issuers and target innovative global companies looking to tap into both US and Asian capital pools. 

Singapore's status as a hub for global capital will be boosted, enhancing Singapore's prestige and potential for higher trading volumes.

The Nasdaq partnership,  combined with other incentives for market makers, could increase market liquidity.

SGX offers Solid Fundamentals as an Investment :

SGX has demonstrated consistent profit growth in the past, with 10% annual EPS growth over 3 years and stable EBIT margins in the last year.

SGX also offers a nice steady dividend yield which enhances the total return for shareholders.  The current dividend yield is 2.35%.  SGX has also announced plans for a steady increase in quarterly dividends from FY2026 to FY2028.  This consistent income stream has provided me as a great source of passive income.

SGX is more than just equities.  It is a full service exchange which includes fixed income, derivatives and commodities.  Derivatives alone has contributed a significant portion of its revenue. 

The Bear Case : What could hold back the rally?

The real test is the execution of SGX new initiatives.  Its success depends on the seamless integration and whether they can effectively change investor behaviour.

Beyond SGX control are the broader market factors.  Global economic volatility, interest rate fluctuations and geopolitical tensions will continue to impact the market and SGX's performance.

Concluding Thoughts 

The new initiatives are a clear positive signal for SGX and Singapore's capital market.  They show a proactive effort to improve market conditions for investors and attract new capital. 

SGX is not just a stock exchange for Singapore.  It is the gateway for global capital to access Asia's rapidly growing economies.  As wealth creation continues across Asia, SGX is strategically positioned to benefit from increased trading volumes, greater capital flow and demand for sophisticated financial products.

My belief in SGX has rewarded me 69% in capital growth and a steady stream of income dividends.  As a Singaporean, I feel a sense of national pride in my SGX investment.  It is not just about numbers.  It is about believing in Singapore's financial infrastructure and its role on the global stage.

Go Long Go Strong Go SGX! 😍😍😍🌈🌈🌈💰💰💰🇸🇬🇸🇬🇸🇬

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