CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.
The Straits Times Index (STI), tracks the top companies by market capitalization on the Singapore Exchange and is seen as the benchmark index for Singapore. Get exposure to the STI with the new Singapore Index.
What is the Straits Times Index?
Dating back to 1966, the STI has a total market capitalization of approximately SGD 5.0 billion1 (as of 31 March 2017). The indexsees a high average daily volume of 350 million shares in 2016 with a dividend yield of approximately 3.5%.
Popular component stocks of the Straits Times Index
Name | Sector (GICS) | Description1 |
Telecommunication | Singapore Telecommunications Limited provides a diverse range of communication services and solutions, including fixed, mobile, data, internet, info communications technology, satellite and pay television. SingTel is Singapore's largest phone company while its subsidiary Optus is ranked second in Australia. | |
Financials | DBS Groupis the holding company for DBS Bank, Singapore's largest bank which also has a significant presence in Southeast Asia. The bank offers personal and private banking in addition to commercial banking services to small and mid-sized companies. Other activities include capital markets, brokerage, fund management, private equity, and equipment and trade finance. | |
Financials | Overseas-Chinese Banking Corporation Limited operates more than 470 branches and offices in 15 countries. The bank provides a comprehensive range of financial services including deposit-taking, corporate, enterprise and personal lending, international trade financing, investment banking, private banking, treasury and more. Bank of Singapore and Great Eastern Holdings operates under the group. | |
Consumer | Wilmar International Limited engages in agribusinesses. The company partakes in oil palm cultivation, edible oil refining, oilseeds crushing, consumer pack edible oils processing and merchandising and more. The company also manufactures and distributes fertilizers and owns a fleet of vessels. | |
Real Estate | CapitaLand Limited is a real estate company focused on investment holding, real estate development, investment in real estate financial products and real estate assets, investment advisory and management services, as well as the management of serviced residences. The company see activities span across 110 cities through the Asia Pacific region and into the Middle East and Europe. | |
Industrials | Founded in 1968, this diversified conglomerate began as a Singaporean dock operator. Keppel Corporation Limited's core businesses are primarily offshore and marine, infrastructure, property investment and development, telecommunications and transportation, energy, and engineering. The lion's share of Keppel's revenue comes from its Offshore & Marine unit, accounting for more than half of its annual revenue. | |
Consumer | Genting Singapore PLC, through its subsidiaries, develops resort properties as well as operates casinos. The company has casinos and integrated resorts in various parts of the world. | |
Industrials | ComfortDelGro Corporation Limited provides land transport services including bus, taxi, rail, care rental and leasing and more. | |
Telecommunication | StarHub Limited is a fully-integrated info-communication company offering a full range of information, communications and entertainment services for both consumer and corporate markets in Singapore. StarHub commands more than 30% of Singapore’s mobile phone market, making it the fastest-growing mobile operator in the country. |
Overview of STI historical performance
Over the past 10 years, the STI had clocked a total return of 61% as compared to an average of 41% in SGD terms for the Dow Jones, Hang Seng, Nikkei 225 and FTSE 100 index2. This outperformance of the Singapore Index has sustained into 2017 with the first quarter performance being one of the best amongst benchmark Asian indices.
Underpinned by an improvement in global economic growth, the STI has seen market interest improve significantly. The question moving forward would be whether this outperformance can sustain for the benchmark index of this small open economy. A confluence of factors including US-China trade relations and US policies are just some of the developing influences for the STI.
Key sectors - Financials
Taking the lion’s share on the Straits Times Index, local banks finds their price movement having a proportionately high impact upon the STI. Read about our bank earnings analysis at the start of each earnings season.
How to trade the Singapore Index?
One way to gain exposure to the Straits Times Index would be through a CFD on the Singapore Index.This unique index CFD allows you to go both long or short and is available 24 hours a day, even when the markets are closed. With no commissions charged per trade, and 20 times leverage available, a CFD is a low cost instrument that you can utilise.
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1Source: Bloomberg
2 Source: Singapore Exchange
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