Newspaper Publisher Singapore Press Holdings (SGX: T39) Tossed out of the Straits Times Index: What Investors Should Know

Singapore Press Holdings (SGX: T39) will no longer be part of Singapore’s Straits Times Index (STI).

In an announcement on 4 June, FTSE Russell said that Mapletree Industrial Trust (SGX: ME8U) will replace Singapore Press Holdings (SPH) following STI’s June 2020 quarterly review.

The STI’s co-creators are SPH itself, Singapore Exchange Limited (SGX: S68), and FTSE Russell.

The replacement will be effective from the start of trading on Monday, 22 June 2020.

SPH is the publisher of The Straits Times newspaper while Mapletree Industrial Trust is a real estate investment trust (REIT) with industrial properties mainly in Singapore.

For the past year, SPH’s shares have plummeted 42%, but Mapletree Industrial Trust’s units have gone the opposite direction — up 28%.

With Mapletree Industrial Trust’s inclusion, the number of REITs represented in the STI will increase to six.

The index now already contains five REITs, and they are:

1. Ascendas REIT (SGX: A17U),
2. CapitaLand Commercial Trust (SGX: C61U),
3. CapitaLand Mall Trust (SGX: C38U),
4. Mapletree Commercial Trust (SGX: N2IU), and
5. Mapletree Logistics Trust (SGX: M44U).

Before being included in the STI, Mapletree Industrial Trust was part of the index’s reserve list.

The reserve list is like a substitute bench in football.

This list contains five highest-ranking non-constituent STI shares by market capitalisation.

If any of the index components become ineligible to continue being part of the STI, it would be replaced by those on the STI reserve list.

Here’s an updated reserve list following the promotion of Mapletree Industrial Trust (in order of market capitalisation):

• Keppel DC REIT (SGX: AJBU),
• Suntec Real Estate Investment Trust (SGX: T82U),
• NetLink NBN Trust (SGX: CJLU),
• Frasers Logistics & Industrial Trust (SGX: BUOU), and
• Keppel REIT (SGX: K71U).

Stocks on this reserve list will replace any STI component that becomes ineligible due to corporate actions, before the next review.

The next review is slated to take place in three months’ time.

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Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer may have a vested interest in the companies mentioned.