Scrapping penny stocks not the solution

WHILE equity markets around the world have been climbing steadily, led by Wall Street, amid signs of a recovery in economic conditions in key economies, the Singapore bourse has gone into something of a hibernation. Yes, the benchmark Straits Times Index has held steady but overall volumes have plunged, reflecting a major loss of trading interest over the past two months.

And this is largely due to the collapse in the erstwhile most vibrant segment of the market: sub-dollar counters. Much of this has had to do with the fortunes of several highly active stocks …