Constituents for benchmark index STI unchanged after quarterly review

But tweaks made to FTSE ST indices.

In a joint release, Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Group (FTSE) announced that constituents of the Straits Times Index (STI) will be unchanged following the conclusion of its quarterly review.

The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Keppel Land, Ascendas Real Estate Investment Trust, UOL Group, Yangzijiang Shipbuilding Holdings and CapitaCommercial Trusts. Companies in the reserve list will replace any constituents that become ineligible as a result of corporate actions, before the next review.

The STI is widely followed by investors as the benchmark for the Singapore market and is used as the basis for a range of financial products including Exchange Traded Funds (ETFs), futures, warrants and other derivatives.

Several changes were made to other indices in the FTSE ST Index Series including the FTSE ST Maritime and FTSE ST Catalist. In the FTSE ST China Top Index, Global Logistic Properties and Keppel Land will replace United Envirotechand Hyflux respectively. Full details of all deletions and additions can be found under the Index Reviews section at www.ftse.com/st.

All changes from this review will take effect from the start of trading on 23 December 2013. The next review is scheduled for 6 March 2014.

The indices are reviewed half-yearly by the independent FTSE ST Index Advisory Committee, in accordance with the index ground rules and reviewed quarterly to fast-track the inclusion of eligible IPO stocks. The FTSE ST methodology is said to ensure the indices accurately represent the investable universe for benchmarking purposes and can be easily replicated as the basis of index-linked products.