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Smaller board lots: the race to $10 starts at 10

The Edge Singapore
The Edge Singapore  • 3 min read
Smaller board lots: the race to $10 starts at 10
A handful of stocks trading above $6 but below $10 could benefit from plans to reduce board lot sizes from 100 shares to 10 shares.
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Among the initiatives to enhance market infrastructure and increase trading efficiency are plans to reduce board lot size to improve investor access. The Singapore Exchange (SGX) plans to reduce the board lot size for securities above $10 from 100 to 10 units. This significantly lowers minimum investment requirements, broadening investor participation and boosting trading activity.

Would this move spur a rally in stocks that are trading above $6 but below $10? And if so, which are the most likely stocks?

Top of mind are the three developers: City Developments (CDL), Hongkong Land and UOL Group, which are trading at discounts to their net asset values (NAV).

CDL’s NAV was $10.10 based on historical cost accounting as of June 30, and $17.48 if investment properties are revalued at market. CDL last traded at $7.23, up 42% this year.

Hongkong Land’s NAV as of June 30 was US$13.62, compared to its last done price of US$6.31, 0.46 times NAV.

UOL Group’s end-June NAV was $13.59. Although UOL’s share price is up more than 66% this year, it is still trading at 0.63 times its NAV.

See also: Amova to launch two funds under EQDP in 1Q

Other stocks trading above $6 are Sembcorp Industries, Singapore Technologies Engineering (ST Engineering) and Singapore Airlines. At the end of 1H2025, Keppel was trading at $7.42 and it is now above $10. The most bullish call on Keppel is JP Morgan’s $12.50 price target by end-2026.

It wasn’t so long ago that Sembcorp was at around $7.80. A disappointing set of 1HFY2025 ended June 30 results, partly pressured by foreign exchange (forex) losses, set the stock back almost $2 and it is currently at $6.31 as of Nov 19.

Among the $10 aspirants, ST Engineering is probably the closest at $8.63. DBS Group Research has a target of $9.40 while CGS International has a target of $9.50. These appear to be more attainable targets and are probably stepping stones to $10.

See also: AR Capital to launch its EQDP-appointed fund in 'early 2026'

Read more about the latest updates from the equities market review group:

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