To FTSE Russell CEO Fiona Bassett, the STI’s reputation as a staid index is far from a drawback. In her view, the real test of an index benchmark is its ability to withstand the test of time. “The STI celebrates 60 years today and that is evident of how it has been designed, but also critically of how it has evolved.”
Before the Straits Times Index (STI) began reaching new highs, Singapore’s benchmark equity index had earned a reputation for being stable, dividend-driven and, dare we say it, a little boring. This perception likely stems from the type of companies that make up the index.
Of the STI’s 30 constituents, Singapore’s largest and most liquid counters, 12 have been a part of the index since 1998. They include the three local banks and government-linked companies like Singapore Telecommunications (Singtel) (SGX:Z74
) and Singapore Airlines (SIA) (SGX:SIA) .
