SGX Centre Singapore

History

Established in 1966, the Straits Times Index (STI) has a rich history. It came into existence on August 31, 1998, succeeding the Straits Times Industrials Index (STII) after a significant sectoral re-classification by the Singapore Exchange. The STI commenced trading at 885.26 points, seamlessly continuing from where the STII left off. At that time, it represented 78% of the average daily traded value over a 12-month period and 61.2% of the total market capitalization on the exchange.

In a review, the number of stocks in the STI increased from 45 to 50, effective upon the resumption of trading on March 18, 2005. This adjustment lowered the index representation of the average daily traded value to 60% but raised the total market capitalization to 75%.

The STI underwent a transformation and was reintroduced on January 10, 2008. In collaboration with SPH, SGX, and FTSE, the number of constituent stocks was reduced from around 50 to 30. The index calculation method shifted to FTSE’s methodology. The FTSE Straits Times Index (STI) is a capitalization-weighted benchmark for the Singapore stock market, jointly calculated by Singapore Press Holdings (SPH), Singapore Exchange (SGX), and FTSE Group (FTSE). The creation of the FTSE ST Index Series aimed to facilitate the development of financial products, including institutional and retail funds, ETFs, derivatives contracts, and other index-linked products.