Jardine units, Olam kicked out of benchmark Straits Times Index

Guess which companies will take their place.

Two Jardine units and agribusiness giant Olam International were the first casualties of new liquidity rules for constituents of the benchmark Straits Times Index (STI).

After the conclusion of its semi-annual review, the index will welcome property developer UOL Group, shipbuilder Yangzijiang Shipbuilding Holdings and gateway and food solutions provider SATS.

Jardine Matheson, Jardine Strategic Holdings and Olam were dropped from the list as new rules require shares on the STI to have a reasonably high level of turnover or liquidity.

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.

The STI reserve list, made up of the five highest ranking non-constituents of the STI by market capitalisation, will be CapitaLand Commercial Trust, Singapore Post Ltd, Suntec REIT, Keppel REIT and M1.

Companies on the reserve list will replace any constituents that become ineligible as a result of corporate actions, before the next review. 

The changes were unveiled by Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Russell.