Straits Times Index

The Straits Times Index is the leading share index in Singapore. It comprises the 30 largest companies listed on the Singapore Exchange.

Calculation

The Straits Times Index ( STI) comprises the 30 largest public companies on the Singapore Exchange (SGX ), which cover 60 percent of the market capitalization and trading volume of the stock market. The company needs to be included in the index to be financially capable of acting, highly liquid and traded on the Singapore Exchange.

The most important criterion for admission is the liquidity of the shares. To determine the index members, all publicly traded stock corporations are determined according to their average trading volume for the last six months. Subsequently, the Singapore Exchange selects the 30 in terms of their liquidity and market capitalization largest companies. In order to adequately reflect the real economic conditions, a mapping by sector takes place. The stock exchange shall ensure that no sector is over-represented. Finally, the company is awarded on the basis of their free float their weight in the index.

The index is not adjusted for dividend payments. Corporate actions such as stock splits have no ( distorting ) influence on the index. A review of the composition of the STI at least once a year. When new shares in suspensions, mergers and acquisitions, the index is revised.

Leading indicator for the stock market

The business activities of the commercial metropolis of Singapore are a direct indicator of the state of the world economy and world trade. As one of the so-called Asian tigers Singapore managed within a few decades the leap from an emerging market to a developed country and a primary- oriented services economy. The city-state is of great importance as an international financial center and also in merchandise trade: the port of Singapore's most modern and largest hubs in the world. Here half of the transported annually in the world amount is turned over to petroleum. About 90 percent of world trade, almost 95 percent of the trade of the European Union and nearly 70 percent of Germany's imports and exports are carried by sea. The economic development is reflected in the order situation of the companies listed in the index. Therefore, the Straits Times Index is a reliable leading indicator for the global development of the stock markets.

History

20th century

On December 30, 1966 ( underlying 100 points), the stock index was first published under the name Straits Times Industrial Index ( STII ). On February 13, 1973, the leading index of the Singapore Exchange reached a record high of 611.36 points. Since the end of 1966 the profit amounted to 511.4 percent. During the oil crisis of 1973 and the global recession of 1974 saw the STII the largest fall in its history. Until 18 December 1974, the stock index fell to a low of 146.52 points. This was a decline from February 1973 to 76.0 percent. Only in 1980 the index closed again on its record of 1973.

In the following years marked the STII numerous record highs. On December 30, 1983, the index ended trading with 1002.03 points for the first time over the 1,000 -point mark. Since the low of December 1974, the profit amounted to 583.9 percent. During the recession in the 1980s, the index fell again. On 28 April 1986, the STII closing at 563.34 points. The loss since December 1983 is 43.8 percent. On 6 February 1996, the index reached a new record of 2493.71 points. The increase since 1986 is 342.7 percent. On August 26, 1993, the stock index closed at 2010.20 points for the first time above the limit of 2,000 points.

On August 29, 1998 ( underlying 885.26 points ) replaced the Straits Times Index ( STI) to the then common Straits Times Industrial Index ( STII ). During the Asian crisis, the stock index fell to 4 September 1998 to a low of 805.04 points. That was in February 1996, a decrease of 67.7 percent. From the autumn of 1998, the index began to rise again. On January 3, 2000, he ended the day at 2582.94 points. The gain since September 1998 is 221.1 percent.

21st Century

After the bursting of the speculative bubble in the technology sector ( dotcom bubble ) in 2000, the leading index fell in the next three years by 53.0 percent. On 10 March 2003, the STI ended trading at 1213.82 points. The date marked the end of the descent. As of spring 2003, the index was back on the way up. On 3 January 2007, the STI closed at 3037.74 points for the first time over the 3,000 -point mark. On 11 October 2007, the index reached an all time high with a closing level of 3875.77 points.

On January 9, 2008 ( underlying 3344.53 points) FTSE Group took over the calculation of the index. Since then, the FTSE Straits Times Index lists to reflect this change. The number of index constituents decreased from 47 to 30 companies.

In the course of the international financial crisis in the U.S. real estate crisis originated in the summer of 2007, the STI began to fall again. From the 3rd quarter of 2008, the crisis had an increasing impact on the real economy. As a result, stock prices plummeted worldwide. On 10 October 2008, the index closed below the limit of 2,000 points. A new low was achieved by the STI on March 9, 2009, when he finished trading with 1456.95 points. Since the all-time high of 11 October 2007, this represents a decrease of 62.4 percent.

The March 9, 2009 marked the turning point of the descent. From the spring of 2009, the stock market barometer was back on the way up. Until November 9, 2010 it rose by 127.4 percent to a closing level of 3313.61 points. The slowdown in the global economy and the intensification of the euro crisis led to a fall in the index. On 5 October 2011, the STI ended trading at 2528.71 points. The loss since the peak on 9 November 2010 is 23.7 percent.

The announcement of new bond purchase programs of the European Central Bank, the U.S. Federal Reserve and the Bank of Japan led to a recovery of prices in the stock market. The monetary stimulus played a greater role in price formation, as the global economic slowdown and the position of the company. On 10 January 2013, the index closed at 3226.25 points, up by 27.6 per cent as on October 5, 2011.

Highs

The overview shows the all-time highs of the Straits Times Index.

Milestones

The table shows the milestones of the Straits Times Index.

Annual development

The table shows the development of the Straits Times Index since 1970.

Composition

The Straits Times Index is composed of the following companies (as of 23 August 2010).