Straits Times Index (STI) in Perspective
Coverage
The Straits Times Index (STI) represents the top 30 companies by market capitalization on the Singapore Exchange (SGX) Main Board that meet specific investability criteria.
Objective
The STI is designed to serve multiple purposes, including:
Creation of structured products.
Index tracking funds and exchange-traded funds (ETFs).
Use as a performance benchmark for investors.
Performance Overview
As of the latest data:
The YTD return for the STI is 18%, excluding dividends. In comparison, DBS Group Holdings has achieved a 49.5% return, excluding the impact of a 10% bonus share and dividends.
This performance indicates that investing directly in banks, particularly DBS, has yielded significantly better returns than the broader market represented by the STI this YTD.
Weightage of Index
The STI is calculated using a free-float market capitalization-weighted methodology, meaning that companies with higher market capitalizations have a greater influence on the index's performance. This approach ensures that the index accurately reflects the relative size and importance of each constituent stock within the Singaporean market.
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2024-12-05
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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.
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