Sunday, June 25, 2023

History of Straits Times Index (STI)

The Straits Times Index (STI) is the benchmark stock market index of the Singapore Exchange (SGX). It represents the performance of the top 30 companies listed on the SGX based on market capitalization and liquidity. The index serves as a barometer of the Singapore stock market and is widely used by investors to gauge the overall health and performance of Singapore's equities market.

The STI was first introduced on 31 August 1966 with a base value of 100. Over the years, the index has evolved to include various companies from different sectors, reflecting the changing landscape of the Singapore economy. The STI is calculated using a free float market capitalization-weighted methodology, which means that larger and more actively traded companies have a greater impact on the index's movements.

The constituents of the STI are reviewed periodically based on specific criteria such as market capitalization, trading liquidity, and sector representation. Some of the prominent companies that have been part of the STI include DBS Group Holdings, Singapore Telecommunications, Oversea-Chinese Banking Corporation, and Keppel Corporation. These companies represent a diverse range of industries such as banking and finance, telecommunications, real estate, and manufacturing.

As of the latest available information, the constituents of the STI include companies such as Jardine Matheson Holdings, United Overseas Bank, CapitaLand, and Singapore Airlines. The list is subject to periodic changes as companies' market capitalizations and trading volumes fluctuate.

Investors and market participants closely monitor the STI as it provides an indication of the overall performance of the Singapore stock market. The index is used as a benchmark for fund managers, and financial products such as exchange-traded funds (ETFs) are designed to track its performance.

Comparison to other major indices:

1. S&P 500 (United States): The S&P 500 is widely regarded as a benchmark for the U.S. stock market. It represents the performance of 500 large-cap U.S. companies. Historically, the S&P 500 has outperformed the STI in terms of overall returns due to the size and global dominance of the U.S. economy. However, the STI has its own strengths and offers exposure to the unique opportunities in the Singapore market.

2. FTSE 100 (United Kingdom): The FTSE 100 represents the performance of the 100 largest companies listed on the London Stock Exchange. The STI has shown comparable performance to the FTSE 100, and both indices have faced similar challenges such as economic uncertainties and market volatility.

3. Nikkei 225 (Japan): The Nikkei 225 is a prominent index in Japan, representing the performance of 225 large-cap Japanese companies. The STI has demonstrated relative strength compared to the Nikkei 225 in certain periods, reflecting Singapore's position as a regional financial hub and its robust economic growth.

4. Hang Seng Index (Hong Kong): The Hang Seng Index is a key benchmark for the Hong Kong stock market. While both the STI and Hang Seng Index are influenced by regional economic trends and trade dynamics, they may show divergent performance due to variations in industry composition and company-specific factors.

It is important to note that the performance of indices can be influenced by a multitude of factors, including economic conditions, geopolitical events, and sector-specific dynamics. Investors should consider their own investment goals, risk tolerance, and diversification strategies when comparing the STI to other major indices.

Disclaimer: The information provided here is for educational and informational purposes only and should not be construed as financial or investment advice. The constituents of the STI may change over time, and it is recommended to refer to the official sources or the Singapore Exchange for the most up-to-date information.

Tuesday, November 21, 2017

Mindchamps IPO

Mindchamps IPO is here.  The amount available to the public is only 2 million shares.  Very low chance of getting.

Monday, June 13, 2016

Frasers Logistics and Industrial Trust IPO launched at $0.89

Frasers Logistics and Industrial Trust is pricing its IPO at the top of range of S$0.89.

Translates to a dividend yield of 6.8% (forecast period of 4 months till 30 September) or 7.3% full year to 30 September 2017.

80 million units up for grab for the public.

The S$903 million IPO is the largest IPO since 2013's Asian Pay Television Trust.

Market cap will be S$1.27 billion.

Portfolio to comprise 51 industrial properties in Australia valued at $1.6billion.

Public offer closes at noon Thursday. Trading expected to start at 9am on 21 June 2016.

Sunday, June 12, 2016

Noble - Timeline of Recent Events

Recent timeline of events for Noble in the past 2 weeks.

30 May 2016 - CEO of Noble steps down.

2 June 2016 - Founder and Chairman of Noble Group, Richard Elman to step down in next 12 months. Announces US$500 million rights issue (1 for 1).

6 June 2016 - OCBC Investment Research ceases coverage of the stock.

8 June 2016 - Bloomberg reports based on uncited sources that another executive ( Gareth Griffiths , Global Head Power and Gas trading) leaving the group.

Friday, June 10, 2016

Otto Marine Privatisation Offer at $0.32

Otto Marine's share price rose after its controlling shareholder, Mr Yaw Chee Siew, offered to buy out shareholders at 32 cents. This represents quite a huge premium before the trading halt was closed.

Otto Marine's share price closed at 31.5 cents today. Lowest trade was at 31 cents.

There is still some risk that this might not go through as delisting is still subject to holders of the multi-currency notes agreeing to certain conditions.

The voluntary listing values the company at $68 million. Otto Marine trades at a discount top its book value.

Sunday, May 1, 2016

OCBC first quarter results - Net Profit at S$856 million

OCBC Bank reported its first quarter results.  In summary:

  • Revenue dropped 2% to $2.06 billion
  • Net Interest Income rose 5% to $1.31 billion
  • Net Profit dropped 14% to $856 million.
  • Total non-performing loans ratio rose to 1% from 0.9% last quarter.
  • NAV was $8.20 (increase by 5.1%)
  • Earnings per share was 82.2 cents (down 17.6%)
OCBC Bank share price closed down at $8.77 (drop of $0.13).

Is OCBC a bargain at this price? 

Personally, I prefer DBS which is trading at a slight discount to its book value. Comparatively, OCBC does provide a slightly higher yield of 4 1% versus DBS 3.9%.

Monday, March 14, 2016

CapitaLand Commercial Trust (CCT) distribution history

Just thought that this might be useful reference for those looking for CapitaLand Commercial Trust (CCT) distribution history.

CCT distribution history

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