THE PHILIPPINE Stock Exchange (PSE) wants to reduce the required minimum units to trade a company’s share in a bid to widen access of smaller investors and boost market liquidity.
The PSE, in a memorandum dated Oct. 9, is proposing to revise the board lot sizes to “democratize stock trading” and accommodate a minimum investment of P100 ($1.80).
The proposal comes as the PSE ramps up efforts to boost liquidity in the exchange by introducing short selling and stock trading via mobile apps.
The PSE is aiming for a nationwide launch of stock trading via popular fintech app GCash this month, PSE Chief Executive Officer Ramon S. Monzon said last week.
Mr. Monzon said GCash, which registered 76 million users last year, wanted to reduce the minimum board lot, which may encourage more people to trade.
The PSE said the number of online stock market accounts rose nearly 9% to about 1.3 million last year, or around three-fourths of the total, in what the bourse described as “muted growth” compared to previous years. However, average value per online transaction increased 33% to about P46,200, PSE said.
Interested parties may submit comments on the proposed amendment by Oct. 23, the PSE memo said. — Bloomberg