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The Top 5 Most Important Industries in the Straits Times Index

Blue chips, or stocks which make up the Straits Times Index (SGX: ^STI), tend to be a favourite among Singapore investors.

The SPDR STI ETF (SGX: ES3), an exchange traded fund which mimics the fundamentals and movement of the Straits Times Index, represents one way for investors to invest in the some of the biggest companies in Singapore’s market.

A recent report from the ETF shed some light on the inner workings of the Straits Times Index. It highlighted the top five most important industries that make up Singapore’s market benchmark. Here are the five industries:

  1. Bank & Financial Services represent over 35% of the Straits Times Index. DBS Group Holdings Ltd (SGX: D05) is the main contributor under this banner. The Asian-focused bank accounted for over 12% of the index on its own.
  2. Real Estate Investments is also a key component of the Straits Times Index. The segment makes up almost 18% of the index. The biggest contributor in the segment would Hongkong Land Holdings Limited  (SGX: H78), which accounted for over 4% of the index.
  3. Next up would be Mobile Telecommunications. Singapore Telecommunications Limited (SGX: Z74) boasts a 10.4% weightage in the Straits Times Index. As a whole, Mobile Telecommunications has a weightage of over 11%.
  4. Moving down the list and the next most prominent segment would be General Industrials. Jardine Matheson Holdings Limited (SGX: J36) is the only contributor to the segment and it makes up 6.4% of the Straits Times Index.
  5. Rounding up the top-five list at fifth place is the Travel & Leisure segment. The segment has a weightage of almost 6% in the Strait Times Index. The biggest contributor in there would be Genting Singapore PLC (SGX: G13). The integrated resort operator accounts for about 2.1% of the Straits Times Index.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The  Motley Fool Singapore has recommended shares of Hongkong Land Holdings. Motley Fool Singapore contributor Chin Hui Leong owns shares of Hongkong Land Holdings.