The Straits Times Index (STI) is a market value-weighted stock market index based on the stocks of 50 representative companies listed on the Singapore Exchange.

Launched in the wake of 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 1 September 1998 at 885.26 points, in continuation of where the STII left off. Then, it represented 78% of the average daily traded value over a 12-month period and 61.2% of total market capitalisation on the exchange.

Constructed by the Singapore Press Holdings , the Singapore Exchange and Associate Professor Tse Yiu Kuen from the National University of Singapore, it comes under formal review at least once annually, and may also be reviewed on an ad-hoc basis when neccesary. 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%.

List of index stocks

Weight factor of each stock is provided in brackets:

Commerce

• Dairy Farm (0.2)
• Jardine Cycle and Carriage (0.35)
• Jardine Matheson (0.3)
• Jardine Strategic (0.2)

Finance

• DBS Group (0.7)
• Great Eastern (0.2)
• Oversea-Chinese Banking Corporation (0.75)
• Singapore Exchange (1)
• United Overseas Bank (0.8)

Manufacturing

• Chartered Semiconductor Manufacturing (0.4)
• Creative Technology (0.7)
• GES International (0.7)
• SembCorp Marine (0.3)
• Singapore Press Holdings (1)
• Venture Manufacturing (0.9)
• Want Want (0.3)

Multi-Industry

• Keppel Corporation (0.7)
• SembCorp Industries (0.45)
• ST Engineering (0.35)

Property

• Allgreen Properties (0.35)
• CapitaLand (0.35)
• City Developments (0.5)
• Hongkong Land (0.55)
• Keppel Land (0.45)
• United Overseas Land (0.35)
• Wing Tai (0.6)

Service

• Datacraft Asia (0.4)
• Parkway (0.8)

Transport, Storage and Communications

• ComfortDelgro (0.8)
• MobileOne (0.45)
• Neptune Orient Lines (0.3)
• SembCorp Logistics (0.25)
• Singapore Airlines (0.45)
• Singapore Telecommunications (0.3)
• StarHub (0.2)
• Total Access Communications {0.2)

• Ascendas REIT (0.6)
• BIL International (0.45)
• CapitaMall Trust (0.4)
• Cosco Investment (0.4)
• Fraser and Neave (0.8)
• Haw Par (0.6)
• Hyflux (0.45)
• Jurong Technologies Industrial (0.65)
• Noble Group (0.35)
• People's Food (0.55)
• Singapore Petroleum (0.2)
• Singapore Post (0.6)
• StatsChipPac (0.6)
• TVP Technology (0.65)

Index formular

The index is calculated by the formular:

Where

• I_t = Index
• P_N = Summation over N stocks
• P_t = Price
• Q_t = Number of shares issued
• W_t = Weight (dependent on free float, usually equals 1)
• D_t = Divisor

See also

• Companies listed on the Singapore Exchange

External links

• Introduction to the STI