Taipei, Oct. 25 (CNA) Odd-lot trading during regular trading hours will be allowed on Taiwan’s stock market starting Monday to make it easier for retail investors to buy high-priced stocks in quantities of less than 1,000 shares, according to Taiwan Stock Exchange Corp. (TWSE).
Stocks in Taiwan are usually bought or sold in lots of 1,000 shares. Odd lots could only be traded previously after regular trading hours by submitting orders from 1:40 p.m. to 2:30 p.m. and having a call auction mechanism match the orders after 2:30 p.m.
Under the new system, investors will be able to offer to buy or sell stocks in odd lots during regular trading hours between 9 a.m. and 1:30 p.m., and the system will begin matching the orders at 9:10 a.m. and then every three minutes after that, the TWSE said.
Investors will have to place their orders online, however, rather than by asking a broker to fill their orders over the phone, according to TWSE.
Though trading will now take place during a trading session, the after hours odd-lots trading system will remain in place.
The new system will allow small investors to buy small amounts of large-cap stocks such as Largan Precision Co., a smartphone camera lens supplier to Apple Inc., which closed at NT$3,180 (US$110.89) per share on Friday.
A full lot of 1,000 Largan shares would cost NT$3.18 million, out of the reach of most retail investors, but the new system will give them a chance to own a piece of Largan or other expensive stocks, said Mega International Investment Services Corp. analyst Alex Huang (黃國偉).
It will also help them diversify risk and make it easier to optimize their portfolios by holding different stocks, Huang said.