Straits Times Index

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FTSE Straits Times Index
Straits Times Index.png
STI performance between 1987 and 2012
Foundation 1966
Operator
[1]
Exchanges Singapore Exchange
Constituents 30
Type Large cap
Market cap
  • S$262,718 million
  • (as of 28 February 2014)
[1]
Weighting
method
Capitalization-weighted
Website FTSE STI

The FTSE Straits Times Index (STI) is a capitalisation-weighted stock market index that is regarded as the benchmark index for the Singapore stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange. It is jointly calculated by Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Group (FTSE).

History[edit]

The STI has a history dating back to 1966.[1] Following a major sectoral re-classification of listed companies by the Singapore Exchange, which saw the removal of the "industrials" category, the STI replaced the Straits Times Industrials Index (STII) and began trading on 31 August 1998 at 885.26 points, in continuation of where the STII left off. At the time, it represented 78% of the average daily traded value over a 12-month period and 61.2% of total market capitalisation on the exchange.[2] The STI was constructed by SPH, the Singapore Exchange and SPH's consultant, Professor Tse Yiu Kuen from the Singapore Management University (formerly from the National University of Singapore). It came under formal review at least once annually and was also reviewed on an ad hoc basis when necessary.[2] One such review, for instance, raised the number of stocks from 45 to 50, which took effect when trading resumed on 18 March 2005. This change reduced the index representation of the average daily traded value to 60%, while increasing its total market capitalisation to 75%.[citation needed]

The STI was again revamped and relaunched in January 2008. As part of a new partnership between SPH, SGX and FTSE, the number of constituent stocks was reduced from about 50 to 30 and the index was re-calculated using FTSE's methodology.[3] Besides the STI, the partners also developed a family of indices including the FTSE ST Dividend Index, FTSE ST China Top tradable index, FTSE ST Catalist Index and FTSE ST Maritime Index as well as 19 Supersector and 39 Sector indices. For the purposes of computing the indices, stocks are classified using the Industry Classification Benchmark (ICB).

The family tree of the FTSE ST Index Series:[1]

  • FTSE ST All-Share Index
    • Straits Times Index
    • FTSE ST Mid Cap Index
    • FTSE ST Small Cap Index
    • FTSE ST China Index
      • FTSE ST China Top Index
    • FTSE ST Maritime Index
    • FTSE ST All-Share Industry Indices (10)
      • FTSE ST All-Share Supersector Indices (19)
        • FTSE ST All-Share Sector Indices (39)
      • FTSE ST Real Estate Index
        • FTSE ST Real Estate Investment & Services Index
        • FTSE ST Real Estate Investment Trusts Index
  • FTSE ST Fledgling Index

The creation of the FTSE ST Index Series was intended to facilitate the creation of financial products such as institutional and retail funds, exchange-traded funds (ETFs), derivatives contracts and other index-linked products.[4] There are currently two ETFs listed on the SGX that track the STI: the SPDR Straits Times Index ETF (formerly known as the streetTRACKS Straits Times Index Fund) [1] (managed by State Street Global Advisors) and the Nikko AM Singapore STI ETF [2].

Constituents[edit]

The 30 constituents of the STI as of 13 November 2013, in the order of market capitalisation are:[5]

List of STI constituents
Stock Symbol Company
SGX: Z74 Singapore Telecom
SGX: J37 Jardine Strategic Holdings
SGX: J36 Jardine Matheson Holdings
SGX: D05 DBS Group Holdings
SGX: O39 Oversea-Chinese Banking Corp
SGX: U11 United Overseas Bank
SGX: F34 Wilmar International
SGX: BN4 Keppel Corp
SGX: H78 Hongkong Land Holdings
SGX: G13 Genting Singapore PLC
SGX: C07 Jardine Cycle & Carriage
SGX: C31 Capitaland
SGX: C6L Singapore Airlines
SGX: Y92 Thai Beverages
SGX: MC0 Global Logistics Properties
SGX: C09 City Developments
SGX: S63 Singapore Technologies Engineering
SGX: S51 SembCorp Marine
SGX: U96 Sembcorp Industries
SGX: NS8U Hutchison Port Holdings Trust
SGX: E5H Golden Agri-Resources
SGX: N21 Noble Group
SGX: S68 Singapore Exchange
SGX: C38U CapitaMall Trust
SGX: JS8 CapitaMalls Asia
SGX: T39 Singapore Press Holdings
SGX: CC3 Starhub
SGX: O32 Olam International
SGX: S59 SIA Engineering Company
SGX: C52 ComfortDelGro Corporation
List of STI constituents reserve list[6][7]
Stock Symbol Company
SGX: A17U Ascendas Real Estate Investment Trust
SGX: K17 Keppel Land
SGX: U14 UOL Group
SGX: C61U CapitaCommercial Trust
SGX: BS6 Yangzijiang Shipbuilding Holdings

On 8 March 2013 it was announced that Thai Beverage (SGX: Y92) will replace IHH Healthcare in the ST Index effective on 18 March.[8][9]

References[edit]

  1. ^ a b c d "Straits Times Index Factsheet" (PDF). FTSE. 
  2. ^ a b "The STI Index". The Business Times. 
  3. ^ "Straits Times Index (STI)". The Straits Times. 
  4. ^ "FTSE ST Index Series". FTSE. 
  5. ^ "STI". FTSE. 
  6. ^ Consists of the names of five companies in line to replace existing STI components that may be dropped at the next review
  7. ^ "Neptune Orient dropped from STI". Today. Dow Jones. 14 September 2012. p. 50. 
  8. ^ "FTSE ST Semi-Annual Review March 2013". FTSE. 
  9. ^ "Thai Beverage to replace IHH Healthcare in the Straits Times Index on March 18". 8 March 2013. Retrieved 8 March 2013. 

External links[edit]