Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Today's live share price, quote history, chart & news
The FTSE Straits Times Index (otherwise known as the STI) is the major blue-chip stock market index of the Singapore Exchange (SGX), and the benchmark index of the Singaporean economy more broadly. It has been calculated in one way or another since 1966, and today is managed and calculated jointly by the Singapore Exchange, FTSE Group, and Singapore Press Holdings (SPH).
This page will take you through a brief history of the STI, give information about how the 30 stocks it tracks are selected, and let you know how you can invest in the index’s performance.
The FTSE Straits Times Index’s history goes all the way back to 1966. It replaced the Straits Times Industrials Index (STII) in August of 1998, but continued from the same level the index had reached at that point (885.26 points). The reason for this change was a re-classification of the Singapore Exchange which resulted in the removal of the “industrials” category of stocks.
The STI then became the FTSE Straits Times Index in January of 2008, as a result of a new partnership between SGX, FTSE, and SPH. This partnership saw two major changes apart from the index’s name: the stocks the index tracked were reduced from 50 to 30, and the index adopted the methodology used to calculate the FTSE index.
The FTSE Straits Times Index has had a rather turbulent history, with many major spikes and crashes over time. The two most notable of these happened at the times at which the index changed its management or the way it was calculated. In August 1998, when the STII became the STI, the index dipped below 900 index points for the first time since February 1988. Similarly, in 2008, the global financial crash saw the index fall from its all-time high of 3875.77 on October 11th 2007 to 1,746.47 by 1st January 2009. The STI has recovered from this point, but never reached its October 2007 heights again.
There are 30 stocks tracked by the STI, and those selected are the top companies listed on the Singapore Exchange by market capitalisation and trading volume. Companies currently included in this list are Singapore Airlines, CapitaCom Trust, and Oversea-Chinese Banking Corp.
In order to invest in an index, you need to use a financial instrument designed to track its performance over time. The two most common ways of doing this are ETFs (exchange-traded funds) and mutual funds. With an STI ETF you’ll have a diversified investment that follows the FTSE Straits Times Index, and you can also trade your investment at any time during trading hours on an exchange. A mutual fund gives you a similar form of diversification, but less flexibility as mutual funds can only be bought or sold at the end of the day’s trading.
Another option that is feasible when it comes to investing in blue-chip exchanges like the STI is to buy stocks in all 30 companies listed on the index. This will incur trading fees and take more time, but gives you the flexibility of being able to drop any stocks you don’t like out of your portfolio, instead of having to be invested in all of them at once.