Straits Times Index

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Straits Times Index
Straits Times Index.png
Historical logarithmic graph of the STI from 1987 to 2019
FoundationSeptember 15, 1966; 56 years ago (1966-09-15)
Operator
[1]
ExchangesSingapore Exchange
Constituents30
TypeLarge cap
Market capS$288.8 billion
(as of June 2018)[1]
Weighting methodCapitalization-weighted
WebsiteFTSE STI

The Straits Times Index (abbreviation: STI) is a capitalisation-weighted measurement stock market index that is regarded as the benchmark index for the stock market in Singapore. It tracks the performance of the top 30 companies that are listed on the Singapore Exchange (SGX).

In addition to the SGX, it is also jointly calculated by the Singapore Press Holdings (SPH) and the FTSE Group (FTSE).

History[edit]

Early years[edit]

The STI has a history dating back to its founding in 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 previous Straits Times Industrials Index (abbreviation: 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]

Revamp[edit]

The STI was again revamped and relaunched on 10 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][4] 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.[5] 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)(managed by State Street Global Advisors) and the Nikko AM's Singapore STI ETF.

Record values[edit]

Category All-Time Highs
Closing 3875.77 Thursday, 11 October 2007[6][7]
Intraday 3906.16 Wednesday, 10 October 2007

Annual Returns[edit]

The following table shows the annual development of the S&P/TSX Composite Index, which was calculated back to 1970.[8][9][10]

Year Closing level Change in index
in points
Change in index
in %
1970 139.06
1971 198.69 59.63 42.88
1972 432.73 234.04 117.79
1973 265.57 −167.16 −38.63
1974 150.82 −114.75 −43.21
1975 236.76 85.94 56.98
1976 254.81 18.05 7.62
1977 264.24 9.43 3.70
1978 349.16 84.92 32.14
1979 435.41 86.25 24.70
1980 660.82 225.41 51.77
1981 780.78 119.96 18.15
1982 732.32 −48.46 −6.21
1983 1,002.03 269.71 36.83
1984 812.61 −189.42 −18.90
1985 620.04 −192.57 −23.70
1986 891.30 271.26 43.75
1987 823.58 −67.72 −7.60
1988 1,038.62 215.04 26.11
1989 1,481.33 442.71 42.62
1990 1,154.48 −326.85 −22.06
1991 1,490.70 336.22 29.12
1992 1,524.40 33.70 2.26
1993 2,425.68 901.28 59.12
1994 2,239.56 −186.12 −7.67
1995 2,266.54 26.98 1.20
1996 2,216.79 −49.75 −2.19
1997 1,529.84 −686.95 −30.99
1998 1,392.73 −137.11 −8.96
1999 2,479.58 1,086.85 78.04
2000 1,926.83 −552.75 −22.29
2001 1,623.60 −303.23 −15.74
2002 1,341.03 −282.57 −17.40
2003 1,764.52 423.49 31.58
2004 2,066.14 301.62 17.09
2005 2,347.34 281.20 13.61
2006 2,985.83 638.49 27.20
2007 3,482.30 496.47 16.63
2008 1,761.56 −1,720.74 −49.41
2009 2,897.62 1,136.06 64.49
2010 3,190.04 292.42 10.09
2011 2,646.35 −543.69 −17.04
2012 3,167.08 520.73 19.68
2013 3,167.43 0.35 0.01
2014 3,365.15 197.72 6.24
2015 2,882.73 −482.42 −14.34
2016 2,880.76 −1.97 −0.07
2017 3,402.92 522.16 18.13
2018 3,068.76 −334.16 −9.82
2019 3,222.83 154.07 5.02
2020 2,843.81 −379.02 −11.76
2021 3,123.68 279.87 9.84

Constituents[edit]

The 30 constituents of the STI as of 3 January 2022 are:

List of STI constituents
Stock Symbol Company
SGX: A17U Ascendas Real Estate Investment Trust
SGX: C38U CapitaLand Integrated Commercial Trust
SGX: 9CI CapitaLand Investment
SGX: C09 City Developments Limited
SGX: C52 ComfortDelGro Corporation
SGX: D01 Dairy Farm International Holdings
SGX: D05 DBS Group Holdings
SGX: BUOU Frasers Logistics & Commercial Trust
SGX: G13 Genting Singapore PLC
SGX: H78 Hongkong Land Holdings
SGX: C07 Jardine Cycle & Carriage
SGX: J36 Jardine Matheson Holdings Limited
SGX: BN4 Keppel Corporation
SGX: AJBU Keppel DC Reit
SGX: N2IU Mapletree Commercial Trust
SGX: ME8U Mapletree Industrial Trust
SGX: M44U Mapletree Logistics Trust
SGX: O39 Oversea-Chinese Banking Corp
SGX: S58 SATS
SGX: U96 Sembcorp Industries
SGX: C6L Singapore Airlines
SGX: Z74 Singtel
SGX: S68 Singapore Exchange
SGX: S63 Singapore Technologies Engineering
SGX: Y92 Thai Beverages
SGX: U11 United Overseas Bank
SGX: U14 UOL Group
SGX: V03 Venture Corporation
SGX: F34 Wilmar International
SGX: BS6 Yangzijiang Shipbuilding Holdings [zh]

References[edit]

  1. ^ a b c d "Straits Times Index Factsheet". FTSE. Archived from the original (PDF) on 4 November 2016. Retrieved 31 March 2014.
  2. ^ a b "The STI Index". The Business Times. Archived from the original on 23 July 2011. Retrieved 28 February 2011.
  3. ^ "SPH, SGX and FTSE launch revamped Straits Times Index and new FTSE ST Index Series today". The Straits Times. 10 January 2008. Archived from the original on 13 November 2010. Retrieved 22 September 2019.
  4. ^ "Straits Times Index (STI)". The Straits Times. Archived from the original on 12 November 2010. Retrieved 28 February 2011.
  5. ^ "FTSE ST Index Series". FTSE. Archived from the original on 26 October 2009.
  6. ^ "Shares surge to a new high". Today. 12 October 2007. Retrieved 16 August 2019.
  7. ^ "STI closes 3.05% lower". Asiaone. 16 January 2008. Retrieved 16 August 2019.
  8. ^ Manual of Securities Statistics, Nomura Research Institute, Tokio 1997
  9. ^ "Historical data: Straits Times Index - Singapore (^STI)".
  10. ^ "STI Index (^STI?P=^STI) Historical Data - Yahoo Finance". finance.yahoo.com. Retrieved 21 January 2020.

External links[edit]