The main
Singapore stock index is the Straits Times Index. Singapore Stock Exchange (SGX) is the major stock exchange in Singapore. This exchange was formed in December, 1999 as a result of the merging of the Singapore International Monetary Exchange and the Stock Exchange of Singapore.
The Straits Times Index is the main equity index of the stock market of the country and it is compiled by a newspaper of the same name. This index came into force in 1998 and it lists 55 of the top companies in the exchange. This index is a modified version of value weighted index. The market value of the companies listed in this index amounts to about 60% of the total market value of all trading in the SGX.
The Straits Times Industrials Index (STII) was replaced by the Straits Times Index (STI) in September, 1998. This index was created jointly by the Singapore Exchange, the Singapore Press Holdings and professor Tse Yiu Kuen. The index is reviewed at least once a year. The Singapore stock index is all set to experience a major overhaul in December. The component stocks will be reduced to 30 as per recommendations.
Some of the major companies listed in the STI are as follows:
- DBS Bank
- United Overseas Bank
- Olam International
- Noble Group Limited
- Singapore Press Holdings Limited
- Venture Corporation Limited
- Keppel Corporation Limited
- Jardine Cycle and Carriage Limited
- Hongkong Land Holdings Limited
- MobiliOne
- Singapore Telecommunications
- Singapore Airlines
The formula for calculation of the index is as follows:
Index = Summation over (N stocks x Price x Number of issued shares x Weight)/Divisor.
The new entrants after the 5th of February, 2007 in the Straits Times Index are as follows:
- Suntec REIT
- Thai Beverage
- Genting International
- Lebroy Marine
- CapitaCommercial Trust
The companies that have been eliminated from the list are as follows:
- Dairy Farm
- BIL
- TVP Technology
- Haw Par Corporation