Higher-priced stocks are more liquid - SGX study

STOCKS on the Singapore Exchange trading at 25 Singapore cents and higher are more liquid as investors are drawn to invest in them given their lower implicit trading costs, according to a recent study by the Singapore Exchange.

Based on the study, just under half or 371 stocks of the total 736 listed on SGX in 2013 belonged to this price band based on their annual volume-weighted average price while 188 stocks were worth less than 10 Singapore cents.

The report, which examined the link between the quality or liquidity of Singapore-listed stocks and the stock price based on 2013 data, echoed the findings of studies done in other markets that the hi…