Sale of Discounted SingTel Shares @ Post Office

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Sale of Discounted SingTel Shares @ Post Office

Postby Private Investor » 07 Mar 2007, 21:55

I read that SingPost will discontinue the sale of the discounted SingTel Shares on 31 Mar 07

Currently I am holding 620 discounted shares in my CPF. I don't play shares and don't have a remiser or online brokerage account.

Should I sell off my SingTel shares in Mar considering SingPost only charge $17.95 for the transaction fee?

I am not sure what to do with all these shares and I believe bokerage firms charge higher transaction fee
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Re: Sale of Discounted SingTel Shares @ Post Office

Postby jam » 08 Mar 2007, 09:24

I sold mine last month through SingPost & the charge amounts to about $20. Yes, this is cheaper than the normal fees through a brokerage firm.

If u don't EVER intend to set up a brokerage account, it does make sense to sell before the 31st March dateline. Just bring your I/C to the Post Office and fill up a form.
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Postby lonewolf » 08 Mar 2007, 11:39

I beg to differ.

Since the shares is in CPF, by selling them, your CPF savings get credited with around $2000.

By keeping the shares, you will be entitled to future dividends payouts, capital redistibution, capital appreciation etc.. That to me is a much better option that cashing out and getting 2.5% interest.

Regardless of whether you invest in shares or not, everyone should have a CDP and a brokerage account. You never know when it may comes in handy.
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Postby jam » 08 Mar 2007, 13:52

lonewolf wrote:By keeping the shares, you will be entitled to future dividends payouts, capital redistibution, capital appreciation etc.. That to me is a much better option that cashing out and getting 2.5% interest.


Tat's a good point, but do note it's only recently that SingTel hits the current > $3 price. For many many years, there's hardly any capital appreciation (& it can depreciate as well).

In my case, I encash it to pay off my 4.4% housing loan. So I guess it'll depend on your usage of the CPF money as well.
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Postby lonewolf » 08 Mar 2007, 15:01

jam wrote:
Tat's a good point, but do note it's only recently that SingTel hits the current > $3 price. For many many years, there's hardly any capital appreciation (& it can depreciate as well).

In my case, I encash it to pay off my 4.4% housing loan. So I guess it'll depend on your usage of the CPF money as well.


That's true too. But like ghchua has pointed out before, the Singtel shares in CPF attracts loyalty and bonus shares. If you factor those in, I'm quite certain that there are definite capital appreciation.

Anyway, personally, since those shares were bought at a discount using CPF monies, I'm perfectly happy to let it rot inside the CPF. Besides liquidating those 1000+ singtel shares is not going to make a significant difference to my overall CPF account.
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Postby starlight1968sg » 08 Mar 2007, 15:13

I am keeping these shares too; hopefully they become handy when I retire.
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Postby Private Investor » 09 Mar 2007, 18:06

Thanks for all the advice. I think I will leave the SingTel shares in my CPF as I have no need of them for the next 10-15 years. Maybe by then the share value will appreciate

My perception is that investing shares need alot of time and thus I only invest in UTs at the moment.

I think I will go probe around how to invest in shares and setup CDP and a brokerage account to try try. If I remember correctly, someone mentioned that SGX conduct seminar on how to open account and to invest in shares. Probably will check it out
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Postby saint888 » 09 Mar 2007, 18:17

does the discounted shares still gives you dividends? not that i remembered seeing..

lonewolf wrote:I beg to differ.

Since the shares is in CPF, by selling them, your CPF savings get credited with around $2000.

By keeping the shares, you will be entitled to future dividends payouts, capital redistibution, capital appreciation etc.. That to me is a much better option that cashing out and getting 2.5% interest.

Regardless of whether you invest in shares or not, everyone should have a CDP and a brokerage account. You never know when it may comes in handy.
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Postby woonlm492 » 09 Mar 2007, 22:10

Hi everybody,

Apologies for asking some noob questions here :-

1) What are these discounted shares and since they're discounted, what is
the price ?

2) How to buy - with CPF and cash ?

3) Come with dividend too ?

4) Why is Singpost stopping to sell these shares ?

Thanks,.......
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Postby investor » 10 Mar 2007, 01:40

Hi Woonlm492, please note reply in blue:

woonlm492 wrote:Hi everybody,

Apologies for asking some noob questions here :-

1) What are these discounted shares and since they're discounted, what is
the price ?

It does appear attractive to hear such news of "discounted shares" right? Not sure whether it is really at a discount rate or not when it was first introduced. These shares were made available in the year 1993 by the government to eligible adult Singaporeans at $1.90 each of ST A share & $2.50 each of ST2 share in 1996. Refer to No. 6 of link: http://mycpf.cpf.gov.sg/Members/Gen-Inf ... Shares.htm

2) How to buy - with CPF and cash ?

This is an initiative in the year 1993 & 1996 only, so you cannot buy the discounted Singtel shares using any CPF and cash now. ::wink: However, you can still purchase Singtel shares, at the current market rate via online stock portal or brokers.

3) Come with dividend too ?

Yes, it does come with dividend.

4) Why is Singpost stopping to sell these shares ?

Ans: http://mycpf.cpf.gov.sg/CPF/News/News-R ... eb2007.htm


Thanks,.......
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Postby woonlm492 » 11 Mar 2007, 10:28

Right. Thank you, Investor,........
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