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10 Fascinating Things Investors Should Know About The 50-Year Old Straits Times Index

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

A recent report from bourse operator Singapore Exchange traced the history of the Straits Times Index since 2002. A 14 May 2017 article from The Straits Times was even better – it went back decades to 1966, right to the index’s roots.

The Straits Times Index was founded before the Stock Exchange of Singapore (SES) and has a history almost as storied as Singapore itself. Here’re 10 fascinating things that investors may want to know:

1. For the first five, head here.

6. Real estate giant City Developments Limited (SGX: C09) is one of the oldest companies within the Straits Times Index – it was founded in 1963, around three years before the index officially kicked off. On the younger end, Golden Agri-Resources Ltd (SGX: E5H) was founded in 1996.

7. The SPDR STI ETF (SGX: ES3) was listed in April 2002. The listing marked another milestone as it opened the door for investors to invest in the Straits Times Index. The exchange traded fund (ETF) has delivered a total return of 190% (including dividends) over the last 15 years.

8. Based on estimates, today’s Straits Times Index derives 46% of its revenue from Singapore and 47% from Asia Pacific (excluding Singapore). The remaining 7% comes from the rest of the world.

9. According to EY’s Global IPO Trends: Q1 2017 report, the Singapore Stock Exchange is the preferred listing destination for real estate investment trusts (REITs) and business trusts. The largest REIT in Singapore’s market right now would be Ascendas Real Estate Investment Trust (SGX: A17U), which is also part of the Straits Times Index.

10. The three biggest sectors in the Straits Times Index are banking (34%), real estate (18%), and capital goods (14%). This is based on the GICS categorisation. The component stock with the largest market cap is Jardine Matheson Holdings Limited (SGX: J36).

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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 Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.