The Straits Times Index helps you to make sense of the daily fluctuations in the stock market by giving you an overall picture of the performance of the general market in a summarized statistic. This statistic saves you from having to track the 700+ listed stocks on the Singapore stock exchange to find out what the general market is doing.
The STI is the main measurement for the performance of the Singapore stock market. It mirrors the day to day behavior of 30 component stocks which are selected based on market capitalization and liquidity. The STI is reviewed two times a year in order to maintain an accurate reflection of the Singapore stock market.
The STI may also be used as a reference to judge the ‘strength’ of an individual stock. During a market correction, a stock that fall less than the STI is more likely to rebound faster relative to other stocks that fell more than the STI.
One caution though. Even as most stocks are influenced by the STI, it is not advisable to apply a fixed relationship between the STI and individual stocks as each stock behaves differently.
I have broken down the 30 stocks into their respective sectors
For detail information about each component stock, click here to bring you to the Singapore Exchange Ltd (SGX) all in one corporate information website.
In fact, the SGX website is one of the best resources for the Singapore stock market investor. Learn how to fully utilize the SGX website