More broking houses are starting to enforce restricted trading on more
and more penny stocks. AmFrasers is reported to have put 11 stocks in
their restricted list while UOB Kay Hian has a list of 56 stocks. Such
stocks can only be traded under conditions set by the broking houses
like cash out front, limited volumes to buy per investor or for the
whole house to limit the risk exposure, etc etc.
What would happen if the number of stocks on the restricted list
increases into the hundreds? What are the implications,… that these
stocks are dangerous, not fit to be listed in the exchange, not suitable
for trading by normal investors? If these stocks are so dangerous,
should not they be put into a separate list and investors be made to
sign an indemnity form to declare they know the risk when they trade
these stocks? We do not want them to complain that they did not know
these stocks are so dangerous when they lose big sums of money, right?
Hopefully these stocks are not in the same category as Lehman Bonds or
toxic notes, high risk and should not be touched with a ten foot pole.
For these stocks to be listed in the main board they must be worth
something or at least have some respectability and soundness, or have
been vetted to be ok.
Let’s hope the restricted lists do not grow longer and the few stocks there are an anomaly, exceptions than the rule.
ReplyDeleteIf you choose to speculate in stocks you would already know that speculating in stocks especially penny stocks is very very risky whether there is any form of restriction or not.
Very often, speculators cannot sleep and eat very well during falling markets.
Do you expect our reputable goldsmith shops to sell fake gold?
ReplyDeleteOur foreign talent CEO wants to increase trading volume.
ReplyDeleteAnd our brokers want to restrict trading.
And our Mental Minister says we want in with our eyes wide opened.
It's pretty obvious our Leeders have lost their strategic direction and cohesion.
So dear Leeders.
Let me tell you something all Singaporeans already know.
Start first with a quality product.
Listed companies that people want to own.
And will be confident in buying if price drops.
Get this right first.
Then increasing trading volumes will be very easy.
Then brokerages no need to worry about restricting trading.
And investors no need to worry about opening their eyes big, big.
Investors can close eyes and buy with confidence.
Wasn't this the type of Singapore we once knew?
Then what happened?
Did a clever Leeder then moved Singapore into a "disclosure based regime"?
You think I stupid ah?
"disclosure based regime" means "buyer beware" tio bo?
When I read that in 2001, more than 10 years ago.
I stopped investing in shares listed on SGX.
See below for the "disclosure based regulation regime" of MAS.
ReplyDeletePage 4 of 7.
Under the heading 'Financial Supervision"
http://www.bis.org/review/r010720a.pdf
Now stock market no need stocks. Just sell pieces of papers like COE can liao. Then let computers to do trading.
ReplyDeleteMoral of story .. don play with penis ...always park your money long term with good blue chips ....like sembcorp sembma keppel ocbc dbs uob etc... wont go wrong one..
ReplyDeleteThat 3 small penis wild swing recently wipe out almost 8b cap from sgx ... cant imagine if punters do a long cfd then how ?
Whos gonna pay for that 8b loss ???
Worst than casinos ....
Who has turned the stock market into the casino or allowed it to be turned into a casino?
ReplyDeleteThey cannot say they don't know what is happening like the Lehman bonds.
It is very strange to see so many listed companies trading at less than 10 cents. And what does this create. Is it healthy to push for ipos without good/healthy track records. What do you think.
ReplyDeleteThe Goat
@October 30, 2013 1:06 pm
ReplyDeletedun TALK COCK!!!
tell those who bought
-SIA above $20.00
-Chartered Semicond @ $18.00
-DBS @ $20.00
just to name a few!!!!
a fuck a day will make jack a smart ass
wanna to regulate the market? protect the interests of retail investors
ReplyDeletefor a starter;
S
T
CONTRA TRADING
P
sgx .... everything else are bullshits
knnccb .... where do rats reside?
When they changed all the rules to turn the market into a computer game, the market was finished. But who cares? Like RB said, bo cheng hu. So the criminals could continue to operate the casino legally.
ReplyDeleteWhat kind of stock market has penny stocks worth less than 10c flooding the main board? No one think there is anything wrong. The millionaires are still happily fucking around as if nothing to worry about.
A lot of you still do not understand how important contra trading is to keep this market going. Today, about 90% of the trades are contra trades. The big traders and funds are also doing contra trades. Remove contra and the market will go zzzzzzzzzzzz. Get that?
ReplyDeleteThe problem of the market is not contra. It is about providing a fair trading platform, a level playing field for everyone, big and small traders. You cannot allow the big boys to plug in their computers to know what people are doing, how many people shorted the market and allows the computer to compute whether to buy or sell.
And when HFT comes in it will be worse. It will clean up the small investors with their advantage to speed and information. How can this be allowed? How can this be legal? Even the casinos have some rules on cheating and fair play.
Even the flexible commission rate is bull shit. How can the big boys churn the market and practically paying no commission and can thus take profit with one bid change while the small traders got to wait for several bids before they even break even?
There are many wrongs in a system of unfair advantages and unfair trading. If the big boys or contra traders are paying the same commission, not allow to use computers to take advantage of the small investors, there will be a more level playing field and the small investors may stand a better chance in trading.
Contra provides the liquidity that a small market needs.
Just to add. Buying stocks is not buying merchandise and buy more must give discount. Buying stocks is trading to make profits and the lower commission gives the big traders an unfair advantage. It is a different ball game and cannot be allowed. It is gambling and the big boys are given one extra card.
ReplyDeleteHFT and computer trading are like allowing them to see your cards in a poker game.
@October 30, 2013 4:31 pm
ReplyDeleteprecisely .... klse n sgx are a fucking joke in the intl financial market
where many remisers trade on their own "accounts" to provide profits for the broking firms
trying to make kopi money thru the minimal spread thru volume .. at the mercy of the brokerage mgt n other rats
ever wonder real RETAIL INVESTORS are out of this kuching market?
"... from merit-based regulation
ReplyDeleteof products to a disclosure-based regime."
interesting statement by LHL on page 4 in:
http://www.bis.org/review/r010720a.pdf
What is the meaning of "merit-based regulation of products"?
Does this mean we don't do quality control anymore?
"disclosure based regime" we know means "buyer beware".
@rb
ReplyDelete"Contra provides the liquidity that a small market needs."
then dun cry baby when the chips are down
designation of stocks by broking firms are not something new
whose "inerests" are they protecting? ... yours interest?
this market is not a level playing field ... never was and never will be
the change in bid size .. are to encourage punters like you
@rb
ReplyDeletethe biggest winners r those having access to LIVE info on trades done!!
they decide the fate of punters
8 billion loss is a big big number. How come there are no news report on individuals or companies being taken to task for payment defaults and there must be many. Any reasons?
ReplyDeleteAnon 5:00. Might as well said this is the govt you have and you can't do anything about it. Just accept it.
ReplyDeleteThe stock market is a bit different. There are rules and regulations to provide a fair playing field, no cheating allowed, no unfair advantages. These are things that the SGX are supposed to uphold. You saying it is ok for the exchange to flout its own rules? The investors being cheated got themselves to blame?
What's the point of having rules and regulations and regulators? For fun? If singaporeans are as sick in their thinking as yours, there is not hope for a fair and just society and system anymore.
And there is MAS and the govt to make sure the SGX plays fair and not run a system that is unfair and free from frauds.
"What's the point of having rules and regulations and regulators? For fun?"
ReplyDeleteAre you talking about SGX or the Fair Consideration Framework?
"If singaporeans are as sick in their thinking as yours, there is not hope for a fair and just society and system anymore."
Agree. We have to vote Opposition to restore balance in our society.
"And there is MAS and the govt to make sure the SGX plays fair and not run a system that is unfair and free from frauds."
Right. Like the mini-bond investors. They were well protected. Even Mental Minister stepped in to say something that was beyond his job description at that time.
@October 30, 2013 9:03 pm
ReplyDeleter & r are written to protect backsides when a fiasco happened
even wonder why they include catch-all clauses and grey area??
how effective can a company be acting as a regulatory body and a profit centre?
oops ..... sorry, think no conflicts of interest. americunt Fed Reserve is a good example. haha
How many of you think we have a fair trading system?
ReplyDeleteHow many of you think our govt knows that we have a fair trading system?
How many of you think that the investors have been cheated by an unfair system?
How many of you think that the govt should be held responsible for it?
The death bell of the stock market has been sounded. If the market activity continues at this level, half of the remisiers will quit the industry within the next few months.
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