Straits Times Index
| Straits Times Index | |
|---|---|
| base data | |
| Country | Singapore |
| Stock exchange | Singapore Exchange |
| ISIN | XC0009653640 |
| WKN | 965364 |
| symbol | S1T |
| RIC | ^ FTSTI |
| Bloomberg code | FSSTI <INDEX> |
| category | Stock index |
| Type | Price index |
| family | Single index |
The Straits Times Index is the leading equity index in Singapore . It includes the 30 largest companies on the Singapore Exchange .
calculation
The Straits Times Index (STI) comprises the 30 largest public companies on the Singapore Exchange (SGX), covering 60 percent of the market capitalization and trading volume of the exchange. To be included in the index, the company must be financially viable, have high liquidity and be traded on the Singapore stock exchange.
The most important admission criterion is the liquidity of the shares. To determine the index members, all stock corporations listed on the stock exchange are determined based on their average trading volume over the last six months. The Singapore Exchange then selects the 30 largest companies in terms of liquidity and market capitalization. In order to adequately map the real economic conditions, an assignment is made according to industrial sectors. The exchange makes sure that no industry is overrepresented. Finally, the companies are given their weight in the index based on their free float .
The index is not adjusted for dividend payments . Corporate actions such as stock splits have no (distorting) influence on the index. The composition of the STI is reviewed at least once a year. The index is revised when new shares are issued, when there are suspensions, mergers and acquisitions.
Leading indicator for the stock market
The business activities of the trading metropolis Singapore are a direct indicator of the state of the world economy and world trade. As one of the so-called tiger states , Singapore made the leap from an emerging country to an industrialized state and an economy primarily focused on services within a few decades. The city-state is of great importance as an international financial center and also in trade in goods: the port of Singapore is one of the most modern and largest transshipment centers in the world. Half of the annual volume of petroleum transported in the world is handled here. Over 90 percent of world trade, almost 95 percent of the European Union's foreign trade and almost 70 percent of German imports and exports are carried out by sea. The economic development is reflected in the order situation of the companies listed in the index. This is why the Straits Times Index is considered a reliable leading indicator for global developments on the stock markets.
history
20th century
On December 30, 1966 (base value 100 points) the share index was first published under the name Straits Times Industrial Index (STII). It was founded by the Singapore Exchange and the media group Singapore Press Holdings (SPH), the owner of the Straits Times , the leading English-language daily newspaper in Singapore, and named after this newspaper.
On February 13, 1973 the leading index of the Singapore Exchange reached a record level of 611.36 points. Since the end of 1966, the profit has been 511.4 percent. During the 1973 oil crisis and 1974 global recession , the STII suffered the biggest fall in its history. By December 18, 1974, the stock index fell to a low of 146.52 points. That was a decrease from February 1973 by 76.0 percent. It wasn't until 1980 that the index closed again above its 1973 record.
In the following years the STII set numerous record highs. On December 30, 1983, the index ended trading with 1002.03 points for the first time above the 1,000 point mark. Since the December 1974 low, the profit has been 583.9 percent. The index fell again during the recession in the 1980s. On April 28, 1986 the STII closed at 563.34 points. The loss since December 1983 is 43.8 percent. On February 6, 1996, the index reached a new record of 2,493.71 points. The increase since 1986 is 342.7 percent. On August 26, 1993, the share index closed at 2,010.20 points for the first time above the 2,000 point limit.
On August 29, 1998 (base value 885.26 points) the Straits Times Index (STI ) replaced the Straits Times Industrial Index (STII) that had been in use up until then. During the Asian crisis , the share index fell to September 4, 1998 to a low of 805.04 points. That was a 67.7 percent decrease since February 1996. From autumn 1998 the index began to rise again. On January 3, 2000, it ended trading at 2,582.94 points. The profit since September 1998 is 221.1 percent.
21st century
After the speculative bubble burst in the technology sector ( dotcom bubble ) in 2000, the leading index fell by 53.0 percent over the next three years. On March 10, 2003, the STI ended trading at 1,213.82 points. The date marked the end of the descent. From spring 2003 the index was on the way up again. On January 3, 2007 the STI closed for the first time above the 3,000 point mark with 3,037.74 points. On October 11, 2007, the index reached an all-time high with a closing level of 3,875.77 points.
On January 9, 2008 (base value 3,344.53 points) the FTSE Group took over the calculation of the index. Since then, the stock index has been called the FTSE Straits Times Index to reflect this change. The number of index members fell from 47 to 30 companies.
In the course of the international financial crisis , which had its origin in the US real estate crisis in the summer of 2007, the STI began to decline again. From the third quarter of 2008, the crisis increasingly affected the real economy. As a result, share prices collapsed worldwide. On October 10, 2008, the index closed below the limit of 2,000 points. The STI hit a new low on March 9, 2009, when it ended trading at 1,456.95 points. Since the all-time high of October 11, 2007, this corresponds to a decline of 62.4 percent.
March 9, 2009 marks the turning point of the downward trend. From spring 2009 the stock market barometer was on the way up again. By November 9, 2010 it rose by 127.4 percent to a closing level of 3,313.61 points. The weakening of the global economy and the worsening of the euro crisis led to a slump in the index. On October 5, 2011, the STI ended trading at 2,528.71 points. The loss since the peak on November 9, 2010 is 23.7 percent.
The announcement of new bond purchase programs by the European Central Bank , the US Federal Reserve and the Bank of Japan led to a recovery in prices on the stock market. The monetary stimulus played a bigger role in the price formation than the global economic slowdown and the state of the companies. On January 10, 2013, the index closed at 3,226.25 points, 27.6 percent higher than on October 5, 2011.
Highs
The overview shows the all-time highs of the Straits Times Index.
| Points | date | |
|---|---|---|
| in the course of trading | 3,906.16 | Wednesday October 10, 2007 |
| on a closing price basis | 3,875.77 | Thursday October 11, 2007 |
Milestones
The table shows the milestones of the Straits Times Index.
| First close over |
Final score in points |
date |
|---|---|---|
| 1,000 | 1,002.03 | December 30, 1983 |
| 1,500 | 1,522.00 | January 3, 1990 |
| 2,000 | 2,010.20 | August 26, 1993 |
| 2,500 | 2,582.94 | January 3, 2000 |
| 3,000 | 3,037.74 | January 3, 2007 |
| 3,500 | 3,501.10 | May 14, 2007 |
Annual development
The table shows the annual development of the Straits Times Index since 1970.
| year | Final score in points |
Change in points |
Change in% |
|---|---|---|---|
| 1970 | 139.06 | ||
| 1971 | 198.69 | 59.63 | 42.88 |
| 1972 | 432.73 | 234.04 | 117.79 |
| 1973 | 265.57 | −167.16 | −38.63 |
| 1974 | 150.82 | −114.75 | −43.21 |
| 1975 | 236.76 | 85.94 | 56.98 |
| 1976 | 254.81 | 18.05 | 7.62 |
| 1977 | 264.24 | 9.43 | 3.70 |
| 1978 | 349.16 | 84.92 | 32.14 |
| 1979 | 435.41 | 86.25 | 24.70 |
| 1980 | 660.82 | 225.41 | 51.77 |
| 1981 | 780.78 | 119.96 | 18.15 |
| 1982 | 732.32 | −48.46 | −6.21 |
| 1983 | 1,002.03 | 269.71 | 36.83 |
| 1984 | 812.61 | −189.42 | −18.90 |
| 1985 | 620.04 | −192.57 | −23.70 |
| 1986 | 891.30 | 271.26 | 43.75 |
| 1987 | 823.58 | 67.72 | −7.60 |
| 1988 | 1,038.62 | 215.04 | 26.11 |
| 1989 | 1,481.33 | 442.71 | 42.62 |
| 1990 | 1,154.48 | −326.85 | −22.06 |
| 1991 | 1,490.70 | 336.22 | 29.12 |
| 1992 | 1,524.40 | 33.70 | 2.26 |
| 1993 | 2,425.68 | 901.28 | 59.12 |
| 1994 | 2,239.56 | −186.12 | −7.67 |
| 1995 | 2,266.54 | 26.98 | 1.20 |
| 1996 | 2,216.79 | −49.75 | −2.19 |
| 1997 | 1,529.84 | −686.95 | −30.99 |
| 1998 | 1,392.73 | −137.11 | −8.96 |
| 1999 | 2,479.58 | 1,086.85 | 78.04 |
| 2000 | 1,926.83 | −552.75 | −22.29 |
| 2001 | 1,623.60 | −303.23 | −15.74 |
| 2002 | 1,341.03 | −282.57 | −17.40 |
| 2003 | 1,764.52 | 423.49 | 31.58 |
| 2004 | 2,066.14 | 301.62 | 17.09 |
| 2005 | 2,347.34 | 281.20 | 13.61 |
| 2006 | 2,985.83 | 638.49 | 27.20 |
| 2007 | 3,482.30 | 496.47 | 16.63 |
| 2008 | 1,761.56 | −1,720.74 | −49.41 |
| 2009 | 2,897.62 | 1,136.06 | 64.49 |
| 2010 | 3,190.04 | 292.42 | 10.09 |
| 2011 | 2,646.35 | −543.69 | −17.04 |
| 2012 | 3,167.08 | 520.73 | 19.68 |
| 2013 | 3,167.43 | 0.35 | 0.01 |
| 2014 | 3,365.15 | 197.72 | 6.24 |
| 2015 | 2,882.73 | −482.42 | −14.34 |
| 2016 | 2,880.76 | −1.97 | −0.07 |
| 2017 | 3,402.92 | 522.16 | 18.13 |
| 2018 | 3,068.76 | −334.16 | −9.82 |
composition
The Straits Times Index is composed of the following companies (as of September 28, 2018).
| No. | Surname | Branch | Index weighting in% |
|---|---|---|---|
| 1 | DBS Group Holdings | Bank | 16.81 |
| 2 | Oversea Chinese Banking | Bank | 12.86 |
| 3 | United Overseas Bank | Bank | 11.92 |
| 4th | Singapore Telecommunications | Telecom | 8.29 |
| 5 | Jardine Matheson Holdings | Conglomerate | 6.13 |
| 6th | Hong Kong Land Holdings | property | 3.64 |
| 7th | Keppel Corporation | Conglomerate | 3.42 |
| 8th | Jardine Strategic Holdings | Holding | 3.10 |
| 9 | CapitaLand | property | 2.91 |
| 10 | Thai beverage | beverages | 2.29 |
| 11 | Ascendas Real Estate Investment Trust | property | 2.16 |
| 12 | Wilmar International Limited | food | 2.15 |
| 13 | Genting Singapore | tourism | 2.11 |
| 14th | Singapore Exchange | Financial service providers | 2.08 |
| 15th | ST engineering | technology | 1.87 |
| 16 | CapitaLand Mall Trust | property | 1.76 |
| 17th | ComfortDelGro | tourism | 1.71 |
| 18th | Singapore Airlines | airline | 1.70 |
| 19th | Singapore Press Holdings | publishing company | 1.57 |
| 20th | Venture Corp | publishing company | 1.57 |
| 21st | City Developments Limited | Hotel industry | 1.47 |
| 22nd | CapitaLand Commercial Trust | property | 1.44 |
| 23 | Dairy Farm International Holdings | retail trade | 1.27 |
| 24 | UOL Group | property | 1.16 |
| 25th | SATS | Airport operator | 1.14 |
| 26th | Jardine Cycle & Carriage | Automobiles | 1.09 |
| 27 | Sembcorp Industries | Conglomerate | 0.97 |
| 28 | Yangzijiang Shipbuilding Holdings | Traffic & Transportation | 0.91 |
| 29 | Hutchison Port Holdings Trust | Holding | 0.59 |
| 30th | Golden Agri-Resources | raw materials | 0.55 |
Web links
Individual evidence
- ↑ FTSE Group: Factsheet ( Memento of the original dated December 18, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 159 kB)
- ↑ Schleswig-Holstein State Government: Maritime Industry - Grow with Security ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ Wirtschaftsblatt: The extent of the stock market correction should become stronger ( Memento from September 21, 2016 in the Internet Archive ), from October 2, 2009
- ↑ Handelsblatt: Singapore introduces new benchmark index , January 11, 2008
- ↑ a b c Yahoo: Historical prices
- ^ Manual of Securities Statistics , Nomura Research Institute, Tokyo 1997
- ↑ 1Stock1: Straits Times Index (Singapore) Yearly Returns
- ^ FTSE Russell Publications , November 19, 2018
