Straits Times Index

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Started on 31 August 1998 after a major shakeup on the Singapore Stock Exchange, the Straits Times Index (simply abbreviated to STI) was introduced, tracking 30 of the top large cap companies from the Singapore Stock Exchange. It works similar to the Dow Jones index in the United States and other indexes from around the world. Although not as grand in scale as other stock market indexes, the same function applies, in that it represents the performance of the whole market, and thus is used and quoted in the financials and by analysts alike. Current statistics suggest that it accounts for around 62% of the entire market's capitalization.

The Straits Times Index works alongside the Financial Times Stock Exchange 100 Index, to adhere to the FTSE ST series index rules.

To be considered eligible for the Straits Times index, companies and their stock must meet the following requirements: They must have valid and freely tradable ordinary shares.

Only ordinary shares are considered, and any preference shares, loan stock or other convertible securities must be converted beforehand to be considered. A minimum of 15% of shares must be traded on the stock exchange at any given time. Securities require a minimum turnover of 0.05% of their related market shares.

Under the guidance of the Singapore Management University's Professor Tse Yiu Kuen, Singapore Press Holdings and the Singapore Stock Exchange, the Straits Times Index is reassessed on an annual basis, or if and when a company no longer meets the above requirements.

As well as being published daily in various financial newspapers around the world, the Straits Times Index is also updated in real time over the internet.

Companies included in the index as of 2008 include the Noble group, Capitaland, Jardine Cycle and Carriage, Olam International and Aingapore Airlines.