Straits Times Index
|
STI performance between 1987 and 2012 | |
| Foundation | 1966 |
|---|---|
| Operator |
|
| Exchanges | Singapore Exchange |
| Constituents | 30 |
| Type | Large cap |
| Market cap |
|
| 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
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%.
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 All-Share Supersector Indices (19)
- 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) (managed by State Street Global Advisors) and the Nikko AM Singapore STI ETF .
Constituents
The 30 constituents of the STI as of 15 April 2016, in the order of market capitalisation are:[5]
On 3 March 2016, Noble Group(SGX: N21) will drop out of the Straits Times Index, CapitaLand Commercial Trust(SGX: C61U) will take its place with the changes taking effect on 21 March 2016.[8]
The STI reserve list now comprises the five highest ranking non-constituents of the STI by market capitalisation, will be: Suntec Real Estate Investment Trust (Reit), Neptune Orient Lines, First Resources, Singapore Post and Keppel Reit.[9]
References
- 1 2 3 4 "Straits Times Index Factsheet" (PDF). FTSE.
- 1 2 "The STI Index". The Business Times.
- ↑ "Straits Times Index (STI)". The Straits Times.
- ↑ "FTSE ST Index Series". FTSE.
- ↑ "STI". FTSE.
- ↑ Consists of the names of five companies in line to replace existing STI components that may be dropped at the next review
- ↑ "Straits Times Index's new constituents: CapitaLand Commercial Trust". The Straits Times. Retrieved 3 March 2016.
- ↑ "straits-times-index-capitaland-commercial-trust-in-noble-group-out". 15 April 2016. Retrieved 3 March 2016.
- ↑ "straits-times-index-capitaland-commercial-trust-in-noble-group-out". 15 April 2016. Retrieved 3 March 2016.
External links
- Reuters page for .FTSTI
- STI Profile at Wikinvest
- Bloomberg page for FSSTI:IND
- A detailed list of the STI index components with description of each company, logo and link to its website can be found on ASEAN UP Top 30 companies from Singapore’s STI
As of 21 September 2015:
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