What Is The Straits Times Index?
 
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What Is The Straits Times Index?

Sudhan P
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In this new series, we demystify investing terms for beginners.

Previously, we looked at what an ETF is. Now, let’s find out more about the Straits Times Index (STI).

So, what exactly is the STI about?

Iron man taking off sunglasses
Source: Giphy

The STI, which has a history going back to 1966, consists of the 30 largest and most liquid companies listed in Singapore. By “liquid”, it means that they must have a certain volume of trading activity in the stock market.

The top 10 constituents of the STI take up around 69% of the index. Those 10 stocks are (data as of 29 November 2019):

ConstituentSectorMarket capitalisation
(S$' million)
Weight (%)
DBS Group HoldingsBanks45,39215.56
Oversea-Chinese Banking Corp
(OCBC)
Banks36,35012.46
United Overseas Bank (UOB)Banks33,13211.36
Singapore Telecommunications (Singtel)Mobile Telecommunications25,1188.61
Jardine MathesonGeneral Industrials 16,3645.61
Keppel CorporationOil Equipment Services & Distribution9,6103.29
CapitaLandReal Estate Investment & Services9,1753.14
Ascendas Real Estate Investment TrustReal Estate Investment Trusts8,7312.99
Thai BeverageBeverages8,7172.99
Hongkong Land HoldingsReal Estate Investment & Services8,7012.98
TotalN/A201,28968.99

In terms of performance, the STI has produced a total return (comprises capital gains and dividends) of 14.7% over the past five years.

STI five-year total return
Source: STI Factsheet

The STI is reviewed regularly. If any of the index stocks become ineligible to continue being part of the STI, it would be replaced by those on the STI reserve list.

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About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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