Straits Times Index
Encyclopedia
The FTSE
Straits Times Index (STI) is a capitalization-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).
on the exchange. 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. 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 capitalization
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. 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:
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. 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) http://www.streettracks.com.sg/ (managed by State Street Global Advisors
) and the DBS
Singapore STI ETF http://www.dbsam.com/stietf/Pages/fund_profile.aspx.
FTSE
FTSE may refer to:* The FTSE Group* Stock market indices published by the FTSE Group, particularly the FTSE 100 Index on the London Stock Exchange* The Fundamental theorem of software engineering...
Straits Times Index (STI) is a capitalization-weighted stock market index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
that is regarded as the benchmark index for the Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange
Singapore Exchange
Singapore Exchange Limited is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges FederationSingapore Exchange...
. It is jointly calculated by Singapore Press Holdings
Singapore Press Holdings
Singapore Press Holdings Limited is a media organisation in Singapore with businesses in print, Internet and new media, television and radio, outdoor media, and property. SPH has over 4,000 employees, including a team of approximately 1,000 journalists, including correspondents operating around...
(SPH), Singapore Exchange
Singapore Exchange
Singapore Exchange Limited is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges FederationSingapore Exchange...
(SGX) and FTSE Group
FTSE Group
FTSE Group is a world-leader in the provision of global index and analytical solutions. FTSE calculates indices across a wide range of asset classes, on both a standard and custom basis...
(FTSE).
History
The STI has a history dating back to 1966. 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 capitalizationMarket capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
on the exchange. The STI was constructed by SPH, the Singapore Exchange and SPH's consultant, Professor
Professor
A professor is a scholarly teacher; the precise meaning of the term varies by country. Literally, professor derives from Latin as a "person who professes" being usually an expert in arts or sciences; a teacher of high rank...
Tse Yiu Kuen from the Singapore Management University
Singapore Management University
The Singapore Management University was officially incorporated on January 12, 2000, and was Singapore's first private university funded by the government...
(formerly from the National University of Singapore
National University of Singapore
The National University of Singapore is Singapore's oldest university. It is the largest university in the country in terms of student enrollment and curriculum offered....
). It came under formal review at least once annually and was also reviewed on an ad-hoc basis when necessary. 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 capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
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. 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
Industry Classification Benchmark
The Industry Classification Benchmark is an industry classification taxonomy developed by Dow Jones and FTSE. It is used to segregate markets into sectors within the macroeconomy...
(ICB).
The family tree of the FTSE ST Index Series:
- 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
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
contracts and other index-linked products. 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) http://www.streettracks.com.sg/ (managed by State Street Global Advisors
State Street Global Advisors
State Street Global Advisors is the investment management division of State Street Corporation and the world’s second largest asset manager, with $1.9 trillion in assets under management as of June 2010....
) and the DBS
DBS Bank
DBS Bank Ltd is a bank incorporated in Singapore. It was previously known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank....
Singapore STI ETF http://www.dbsam.com/stietf/Pages/fund_profile.aspx.
Constituents
The 30 constituents of the STI as of 17 June 2011 are:- City DevelopmentsCity DevelopmentsSingapore's property pioneer since 1963, City Developments Limited is a listed international property and hotel conglomerate involved in real estate development and investment, hotel ownership and management, facilities management as well as the provision of hospitality solutions.With an...
- Fraser and NeaveFraser and NeaveFraser & Neave Limited is a food and beverage, brewing, property and publishing & printing industries conglomerate in Singapore.Listed in Singapore, the group’s subsidiaries and associated companies include Frasers Centrepoint, Asia Pacific Breweries and Times Publishing...
- Keppel Corp
- Neptune Orient LinesNeptune Orient LinesNeptune Orient Lines Limited , is a Singapore-based global transport company with core businesses in container shipping and supply chain management...
- CapitaMalls Asia
- Global Logistic Properties
- Singapore AirlinesSingapore AirlinesSingapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...
- Singapore Press HoldingsSingapore Press HoldingsSingapore Press Holdings Limited is a media organisation in Singapore with businesses in print, Internet and new media, television and radio, outdoor media, and property. SPH has over 4,000 employees, including a team of approximately 1,000 journalists, including correspondents operating around...
- United Overseas BankUnited Overseas BankUnited Overseas Bank Limited , abbreviated as UOB is a bank incorporated in Singapore. It was founded 6 August 1935 by Kuching-born Datuk Wee Kheng Chiang, father of the present United Overseas Bank Group Chairman, Mr...
- Oversea-Chinese Banking CorporationOversea-Chinese Banking CorporationThe Oversea-Chinese Banking Corporation Limited , abbreviated as OCBC Bank , is a publicly listed financial services organisation with its head office in Singapore. OCBC Bank is one of Singapore's leading local banks, with group assets of more than 224 billion SGD. It has one of the highest bank...
- DBS Group HoldingsDBS BankDBS Bank Ltd is a bank incorporated in Singapore. It was previously known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank....
- SembCorp Industries
- Jardine Cycle & CarriageJardine Cycle & CarriageJardine Cycle and Carriage Limited was renamed from Cycle and Carriage following the integration into the Jardine Matheson Group in 2004. The name change recognises Cycle & Carriage's distinguished 104-year operating history and firmly establishes Jardine Cycle & Carriage as part of the Jardine...
- SembCorp MarineSembCorp MarineSembcorp Marine Limited is part of SembCorp Industries, an Asian company based in Singapore. It is listed on the Singapore stock exchange or SGX and is part of the Straits Times Index there...
- Singapore Telecom
- Jardine Matheson
- Jardine Strategic
- Hongkong Land HoldingsHongkong LandHongkong Land is one of Asia’s leading property investment, management and development groups with premium commercial and residential property interests across the region. It owns and manages some five million square feet of commercial space in Hong Kong’s Central Business District serving...
- Singapore Technologies EngineeringSingapore Technologies EngineeringST Engineering Ltd is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the group reported revenues of $5.05b in FY2007. With a market capitalisation of about $10b, it ranks among the...
- CapitalandCapitaLandCapitaLand Limited is the result of a merger in the year 2000 of then DBS Land and Pidemco Land. It is one of Asia's largest real estate companies. Headquartered and listed in Singapore, the company's core businesses are real estate development, hospitality and real estate financial services...
- Golden Agri-Resources
- SIA EngineeringSIA Engineering CompanySIA Engineering Company Limited , commonly abbreviated as SIAEC is a major provider of aircraft maintenance, repair and overhaul services in the Asia-Pacific and is part of the Singapore Airlines Group. The Company has a client base of more than 80 international carriers and aerospace equipment...
- SMRT CorporationSMRT CorporationSMRT Corporation is a public transport operator incorporated on March 6, 2000, as a result of an industry overhaul to form multi-modal public-transport operators in Singapore. It is the second-largest public-transport company in Singapore after ComfortDelGro...
- Wilmar International Limited
- Singapore ExchangeSingapore ExchangeSingapore Exchange Limited is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges FederationSingapore Exchange...
- Noble GroupNoble GroupNoble Group Limited is a global conglomerate manager of agricultural, industrial and energy products. Noble manages a diversified portfolio of essential raw materials, integrating the sourcing, marketing, processing, financing and transportation....
- ComfortDelgro CorporationComfortDelGro CorporationComfortDelGro Corporation Limited is the world's second-largest transport company with a fleet of 46,200 vehicles.Headquartered in Singapore, ComfortDelGro also has operations in China, the United Kingdom, Ireland, Australia, Vietnam and Malaysia. Currently, overseas ventures account for 50% of...
- Genting SingaporeGenting GroupGenting Group is an Asian conglomerate. It comprises four listed entities Genting Group is an Asian conglomerate. It comprises four listed entities Genting Group is an Asian conglomerate. It comprises four listed entities (namely holding company Genting Berhad (MYX:3182) and its member companies...
- CapitaMall Trust
- StarHubStarHubStarHub Limited is a full-fledged telecommunications company providing a full range of services over mobile, internet and fixed platforms in Singapore...
- Olam InternationalOlam InternationalOlam International Limited is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, sourcing 20 products with a direct presence in 65 countries and supplying them to over 11,000 customers....