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Yanlord Land Group Limited Is Now a Candidate for The Straits Times Index

The Straits Times Index (SGX: ^STI), the most prominent stock market benchmark in Singapore, is made up of 30 different stocks.

As a brief background, these 30 companies are reviewed on a quarterly basis to determine whether any changes should be made. The review also brings up five companies for the reserve list. These “benchwarmers” are meant to step up to the plate should any existing Straits Times Index constituent drop out for whatever reason.

The latest review revealed that the China-based property developer Yanlord Land Group Limited (SGX: Z25) is now in the reserve list. Because of this, the company could well find its way into the Straits Times Index in the future.

Here’re a few things that investors might want to know about the new benchwarmers and the Straits Times Index:

1. The previous reserve list consisted of offshore engineering company Sembcorp Marine Ltd  (SGX: S08), the commercial REIT Keppel REIT (SGX: K17), the retail REIT Suntec Real Estate Investment Trust (SGX: T82U), the oil palm producer First Resources Ltd (SGX: EB5), and another retail REIT, Mapletree Commercial Trust (SGX: N2IU).

2. The new list, which was released in June 2017, sees First Resources drop out and replaced by Yanlord Land Group.

3. Some of the reserve companies are connected to existing members of the Straits Times Index. Sembcorp Marine’s parent company, Sembcorp Industries Limited (SGX: U96), is also one of the 30 companies in the index. Keppel Corporation Limited (SGX: BN4), which owns 45% of Keppel REIT, is also an index component.

4. The reserve list has three REITs. REITs are increasingly prominent within the Straits Times Index. Right now, there are three REITs that are part of the index. They are CapitaLand Commercial Trust (SGX: C61U)CapitaLand Mall Trust (SGX: C38U), and Ascendas Real Estate Investment Trust (SGX: A17U).

5. As of 17 June 2017, The SPDR STI ETF (SGX: ES3) offered a dividend yield of 2.84% and has a trailing price-to-earnings ratio of 13.4. The SPDR STI ETF is an exchange traded fund that mimics the fundamentals 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 CapitaLand Mall Trust. Motley Fool Singapore contributor Chin Hui Leong owns shares in Suntec REIT and CapitaLand Mall Trust.