Last Friday, SGX and MAS announced a slew of measures which will, in my thinking, shape how stocks will trade tomorrow, in particular, the smaller penny stocks. Will we see a sell-off in these penny stocks since SGX and MAS are now requiring all listed companies to price each of their stocks at no less than twenty cents?

This may or may not be likely, however I think that many of the penny stock companies will now be busy seeing to how their stock prices can become twenty-cents via consolidation of their shares. Will we see these penny stocks under twenty cents going back to the Catalist board? I think investing interest in penny stocks will be curbed with the authorities’ latest announcement as investors play a “waiting game” to see how the penny stocks will trade. Blue chips stock may be favored by retail investors once again as they …