Reply to Parliamentary Question on Average Holding Period of SGX Stocks
QUESTION NO 511
NOTICE PAPER 193 OF 2013
FOR WRITTEN ANSWER
Date: For Parliament Sitting on 8 July 2013
Name and Constituency of Member of Parliament
Asst Prof Tan Kheng Boon Eugene, NMP
To ask the Prime Minister (a) on average, how long is a stock that is held by individual and institutional shareholders listed on the Singapore Exchange (SGX); and (b) over each decade from 1990 to 2009, what percentage of stocks listed on the SGX are held by individuals.
Answer by Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister in charge of MAS:
1 The Central Depository (CDP) is required to maintain records for six years. Based on CDP’s records, the average stock holding period for individual investors in SGX-listed stocks over the period from 2007 to 2011 was around 10 months. The holding period had increased from an average of around six months in 2007 to around 17 months in 2011. The data for 2012 is currently being processed by CDP.
2 From 2007 to 2011, individual investors accounted for approximately 25% of stock holdings.
3 Asst Prof Tan also inquired about the holding period for institutional investors in SGX-listed stocks. This information is not available as most institutional investors hold shares in custody or omnibus accounts through financial institutions, rather than through direct accounts with CDP.