SIA Engineering Company Ltd Bows Out of the Straits Times Index

As Foolish investors may know, the Straits Times Index (SGX: ^STI), the most prominent market benchmark in Singapore, is made up of 30 different stocks.

What may not be well-known is that the list of 30 is reviewed on a quarterly basis to determine whether any changes should be made. 

In a joint release yesterday, the index’s co-creators – Singapore Press Holdings Limited (SGX: T39), Singapore Exchange Limited (SGX: S68), and FTSE Russell – announced that SIA Engineering Company Ltd (SGX: S59) would be dropped from the index.  

Jardine Strategic Holdings Limited (SGX: J37) will take SIA Engineering’s place.

You say goodbye, I say hello

Before dropping out, SIA Engineering was the smallest contributor to the Straits Times Index, accounting for just 0.33%.

Interestingly, Jardine Strategic Holdings will find a familiar company in the updated index. The conglomerate has stakes in another three STI components, namely Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78) and Jardine Matheson Holdings Limited (SGX: J36). 

Jardine Strategic Holdings also has stakes in Dairy Farm International Holdings Ltd (SGX: D01), Mandarin Oriental International Limited (SGX: M04) and Astra International.

After the index is refreshed, we will have to see how much weight the trio of Jardines and Hongkong Land Holdings will hold in the Straits Times Index. 

The new benchwarmers

As part of the update, the reserve list was also updated.

The new list consists of Keppel REIT (SGX: K17), Suntec Real Estate Investment Trust (SGX: T82U), Venture Corporation Ltd (SGX: V03), Mapletree Commercial Trust (SGX: N2IU) and SIA Engineering.

Compared to the previous reserve list , SembCorp Marine Ltd (SGX: S08) and Yanlord Land Group Limited (SGX: Z25) were dropped from it.

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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, Hongkong Land Holdings, and Dairy Farm International Holdings. Motley Fool Singapore contributor Chin Hui Leong owns shares in Suntec REIT, Dairy Farm International Holdings, and Hongkong Land Holdings.