STI kicks out Hutchison Port Holdings Trust

Its market cap plunged 84% since IPO to $1.93b.

Bloomberg reported that Hutchison Port Holdings Trust will be removed from Singapore’s Straits Times Index (STI) after a dramatic fall in its market value amidst rising global trade tensions, the index provider said in a statement.

The move marks the end of an era for the Li Ka-shing backed container port trust in Hong Kong, whose initial public offering in 2011 was amongst the biggest that year. Its market capitalisation has dropped 84% since IPO to around $1.93b (US$1.4b), the lowest amongst the 30 constituents of the STI, according to data compiled by Bloomberg.

The decline was accompanied by falling operating income since 2016 due to weakened trade demand.

Read the full report here.