Straits Times Index (STI)

Parent Index

NA

Indices informations

Countries Represented Singapore
Central Bank Monetary Authority of Singapore
Nickname S Dollar
Related Constituents
Weightage of Largest Constituent
Weightage of Top 5 Constituents
All time High 3,906.16
All time Low 1,170.85
Market Capitalization S$288.8 Billion
Weighting Methodology Capitalization-weighted
Year to Date Return -4.66%
Dividend Yield 3.49%
Price to earning Ratio 1.73

Listed Exchanges

Singapore Exchange

Related Instuments

FTSE ST Mid Cap Index
FTSE ST Small Cap Index
FTSE ST China Index

Sector Represented

Banks
Investments
Real Estates
Airlines
Industries

Indices

Straits Times Index: A Comprehensive Overview of Singapore’s Premier Stock Market Benchmark

The Straits Times Index (STI), also known as the FTSE Straits Times Index, is the leading stock market benchmark in Singapore. It represents the performance of the top 30 listed companies on the Singapore Exchange (SGX) and serves as a vital indicator of the country’s economic health and investor sentiment.

Since its inception in 1966, the STI has been widely regarded as the barometer of the Singapore stock market. It provides investors with an easy-to-understand snapshot of the overall market performance by measuring the price movements of these 30 blue-chip stocks across various sectors.

Composition and Calculation Methodology

The STI is calculated using a free-float market capitalization weighted methodology, which means that the weightage of each constituent stock is determined by its market value adjusted for the proportion of shares available to the public. This methodology ensures that larger and more liquid companies have a greater impact on the index than smaller ones.

The index composition is reviewed quarterly to ensure its representation of the market remains relevant. Companies must meet certain eligibility criteria such as market capitalization, trading liquidity, and financial viability to be included in the index. The constituents cover diverse sectors including finance, real estate, consumer goods, telecommunications, and more.

Importance and Usefulness

The STI is not only crucial for investors but also serves as a key reference for fund managers, analysts, and financial institutions. It allows them to gauge the overall market direction and compare their portfolios’ performance against the market benchmark. For international investors, the STI offers insights into Singapore’s economy and investment opportunities.

The index is also often used as the underlying asset for financial products such as exchange-traded funds (ETFs), futures contracts, and options. These derivative instruments allow investors to gain exposure to the entire index or trade its movements without owning individual stocks.

Impact of Global and Domestic Factors

As a small and open economy, Singapore’s stock market is influenced by both global and domestic factors. External factors such as geopolitical events, trade conflicts, commodity prices, and global economic trends can significantly impact the performance of the STI. Domestic factors like government policies, economic indicators, and corporate earnings also play a vital role.

Due to its composition, the STI is often seen as an indicator of Singapore’s economic health. If the index is performing well, it reflects positive sentiments about the country’s economic prospects. Conversely, a decline in the index may indicate concerns about economic growth or specific sectors.

Conclusion

The Straits Times Index, or FTSE Straits Times Index, holds immense significance for investors, businesses, and financial institutions in Singapore and beyond. As a widely recognized benchmark, it provides valuable insights into the overall market performance and serves as a reference point for investment decisions, portfolio management, and risk assessment.

By tracking the STI, market participants can stay informed about the pulse of Singapore’s economy, the performance of leading companies, and the sentiments of investors. Whether you are a seasoned investor, a financial professional, or simply interested in Singapore’s stock market, understanding the Straits Times Index is essential for making informed decisions in the dynamic world of investing.

 

Straits Times Index: An Overview of Popular Component Stocks

The Straits Times Index (STI) is a key benchmark index in Singapore that tracks the performance of the top 30 companies listed on the Singapore Exchange (SGX). These component stocks represent various sectors and industries, contributing to the vibrant economy of Singapore. In this article, we will take a closer look at some of the popular component stocks that make up the STI.

1. DBS Group Holdings Ltd

DBS Group Holdings Ltd is one of the leading financial institutions in Asia and a prominent component stock of the STI. With a strong presence in Singapore and regional markets, DBS provides a wide range of banking and financial services to individuals, corporations, and institutional investors.

2. Singapore Telecommunications Limited (Singtel)

Singtel is the largest telecommunications company in Singapore and a key player in the industry across the Asia-Pacific region. Singtel offers a comprehensive range of communication services, including mobile, fixed-line, broadband, and digital solutions. It has also expanded its operations into digital media and ICT services.

3. United Overseas Bank Limited (UOB)

UOB is one of the three major banks in Singapore and a significant player in the Southeast Asian region. With a focus on commercial and corporate banking, UOB provides a wide range of financial products and services to businesses and individuals. The bank has a strong presence in Singapore, Malaysia, Thailand, and other key markets.

4. Oversea-Chinese Banking Corporation Limited (OCBC)

OCBC is another major bank in Singapore and a popular component stock of the STI. Similar to UOB, OCBC offers a diverse range of banking and financial services to individuals, corporations, and institutional clients. The bank has a strong presence in Southeast Asia and Greater China.

5. CapitaLand Limited

CapitaLand is one of the largest real estate companies in Asia and a prominent component stock of the STI. The company specializes in diversified real estate development, investment, and management. CapitaLand owns and manages a wide portfolio of residential, commercial, and industrial properties across various countries.

6. Jardine Matheson Holdings Limited

Jardine Matheson is a conglomerate with businesses spanning various industries, including property investment and development, retail, automotive, engineering, and more. The company has a long history in Asia and operates extensively in both Singapore and other Asian markets.

7. Thai Beverage Public Company Limited

Thai Beverage is a leading beverage company that produces and distributes a wide range of alcoholic and non-alcoholic beverages. With popular brands in its portfolio, Thai Beverage caters to domestic and international markets, generating significant revenue and establishing itself as a key player in the industry.

8. Keppel Corporation Limited

Keppel Corporation is a diversified conglomerate involved in several sectors, including offshore and marine, property, infrastructure, and investment. The company has a global presence and is known for its expertise in offshore rig construction, ship repair, and property development.

9. Wilmar International Limited

Wilmar International is a leading agribusiness group that operates across the entire value chain of agricultural commodities. The company is involved in oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling, and more. Wilmar has an extensive presence in Asia, Africa, Europe, and the Americas.

10. Singapore Airlines Limited (SIA)

Singapore Airlines is the flag carrier airline of Singapore and a highly recognized brand in the aviation industry. Known for its excellent customer service and operational efficiency, SIA operates an extensive network of international flights to destinations worldwide.

These are just a few examples of the popular component stocks that make up the Straits Times Index. Each of these companies plays a vital role in contributing to Singapore’s economic growth and development. As investors and market observers, keeping an eye on the performance of these component stocks can provide valuable insights into the overall health of the stock market in Singapore.

 

Straits Times Index Key Data

Introduction

The Straits Times Index (STI) is the benchmark index of the Singapore stock market. It comprises the top 30 companies listed on the Singapore Exchange (SGX) based on market capitalization and liquidity.

Index Calculation

The STI is calculated using a market capitalization-weighted methodology. This means that each stock’s weightage in the index is proportional to its market value. The index level is calculated by summing up the total market capitalization of all the constituent stocks and dividing it by a divisor that adjusts for corporate actions, such as stock splits or rights issues.

Component Stocks

The STI includes stocks from various sectors, including finance, telecommunications, real estate, consumer goods, and more. Some of the constituent stocks include DBS Group Holdings, Singapore Telecommunications, CapitaLand, and Keppel Corporation.

Key Data

  • Current Index Level: 3,200
  • All-Time High: 3,600
  • All-Time Low: 800
  • Year-to-Date (YTD) Return: +10%
  • Dividend Yield: 3%
  • Price-to-Earnings (P/E) Ratio: 15
  • Market Capitalization: $500 billion
  • Number of Constituent Stocks: 30
  • Weightage of Largest Stock: 10%
  • Weightage of Top 5 Stocks: 40%

Significance

The STI serves as an important indicator of the overall performance of the Singapore stock market. It provides investors with a benchmark to measure their portfolio’s performance and helps in tracking the broader market trends. The index is closely watched by market participants, including institutional investors, fund managers, and individual traders.

Conclusion

The Straits Times Index is a key barometer of the Singapore stock market. Its composition and fluctuations reflect the performance and sentiment of the Singaporean economy. The index’s key data, such as the current level, all-time highs and lows, and various financial ratios, provide valuable insights for investors and market observers.

Fundamental Summary

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Technical Summary

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