SINGAPORE, 4th March 2005 - Since its relaunch on 1 September 1998, the Straits Times Index (STI) has been reviewed on a twice-yearly basis to ensure that the index continues to reflect the daily trading activity on the Singapore Exchange (SGX). The two main factors taken into account in the reviews are the liquidity of each stock (as measured by average daily traded value) and market capitalisation (weighted by a factor that reflects its free float).
Following the latest review, the following changes will be made with effect from the start of trading on Friday, 18 March 2005: two stocks will be removed from the index and seven added, so that the revised STI will comprise 50 stocks - as opposed to 45 previously.
The two stocks that will be removed are Elec & Eltek and Singapore Land. The seven that will be added are Ascendas REIT, CapitaMall Trust, Hyflux, Jurong Technologies Industrial, Noble Group, Singapore Petroleum and StarHub.
With these changes, the STI captures 60 per cent of the average daily traded value of SGX, and 75 per cent of its market capitalisation.
In addition, the weight factors of several index stocks will be updated to reflect corporate actions that have taken place. Each index stock´s weight factor is based on the free float as reported in the company´s latest annual report or in announcements of corporate actions – whichever is the most recent.
Weight factors of the 50 index stocks that will be effective from March 18 are given in the attached annexe.
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LIST OF INDEX STOCKS WEIGHT FACTORS
|Stock||Current weight factor||New weight factor|
|12||Fraser & Neave||0.80||0.80|
|17||Jardine Cycle & Carriage||0.30||0.35|
|23||Neptune Orient Lines||0.65||0.30|
|33||Singapore Press Holdings||0.95||1.00|
|37||Total Access Communications||0.20||0.20|
|38||Oversea-Chinese Banking Corporation||0.75||0.75|
|39||United Overseas Bank||0.80||0.80|
|40||United Overseas Land||0.45||0.35|
|New index stocks|
|47||Jurong Technologies Industrial||-||0.65|