1.Introduction.2.Weighting & Calculations.3.Eligibility.4.Index facts.5.Singapore economy.
The Straits Times Index (also called the STI) is the benchmark index forthe Singapore Exchange.
It covers 30 companies which are deemed representative of the Singaporemarket.
The Singapore Exchange works with the UK Based Financial Times StockExchange 100 Index (UKX-LN) in order to maintain the FTSE ST IndexSeries.
The STI was evolved as a market capitalization weighted index. It involvesthe total market capitalization of the companies weighted by their effecton the index.
So the larger stocks would make more of a difference to the index ascompared to a smaller market cap company.
The basic formula of the index is :Index level=
[(Price of stock * Number of shares)* Free float factor] /IndexDivisor.