The STI was relaunched on 10 January 2008. It underwent two main changes:

(1) The number of constituent stocks was reduced from 50 to 30. This made the STI a blue chip index. The reduction in constituent stocks did not significantly alter the representativeness of the index, given that it is value-weighted. In fact, the last 20 stocks of the old STI represented only about 10 per cent of the index by market capitalisation.

(2) The STI is now calculated by FTSE according to its internationally recognised methodology for liquidity criteria and free-float adjustment. The index's constituents will be reviewed by the three parties at regular intervals.

There is no change to the name or numerical values of the STI, which for the past 40 years has been synonymous with the Singapore stock market.

This was to anchor the STI's position as Singapore's blue-chip index - representing the market's top 30 stocks based on market capitalisation, while being free float-adjusted and screened for liquidity using internationally recognised methodology. A 30-stock STI will also facilitate the creation of more index-linked products.

The full list can be found here. The list will next be reviewed in September 2008.

In total, 21 stocks were dropped from the STI. Sixteen of them were moved to the FTSE ST Mid Cap Index and three to the FTSE ST Small Cap Index, in accordance with the eligibility rules governing the new series of FTSE ST indices. Two companies were dropped because they failed to meet either the free float or liquidity criterion for inclusion in any index.

There are four newcomers to the STI: SIA Engineering, Wilmar International, Yangzijiang Shipbuilding and Yanlord Land Group.

The reduction in constituent stocks has not significantly altered the representativeness of the index, given that the old index was a value-weighted index that tended to be dominated by stocks with larger market capitalisation. In fact, the last 20 stocks of the old STI represented only about 10 per cent of the index by market capitalisation.

The new STI commenced with the same value as the closing value of the old STI.

The current STI ETF and STI Futures continue to be listed and traded on SGX, with enhancements made to incorporate the changes to the new STI.

Other than the new Straits Times Index, which comprises the top 30 companies listed on the SGX Mainboard by full market capitalisation, the following indices were launched:

• FTSE ST Mid Cap Index - comprising the next 50 main board listed companies by full market capitalisation

• FTSE ST Small Cap Index - comprising the remaining companies within the top 98 per cent by full market capitalisation of the main board universe

• FTSE ST All Share Index - comprising all companies within the top 98 per cent by full market capitalisation of the main board universe (i.e. the STI, mid cap and small cap indices combined)

• FTSE ST Fledgling Index - All companies that are too small to be included within the FTSE ST All Share Index.

Companies within the FTSE ST All Share Index have also been classified according to the following sector indices:

• FTSE ST Oil and Gas Sector Index
• FTSE ST Basic Materials Sector Index
• FTSE ST Industrials Sector Index
• FTSE ST Consumer Goods Sector Index
• FTSE ST Healthcare Sector Index
• FTSE ST Consumer Services Sector Index
• FTSE ST Telecommunications Sector Index
• FTSE ST Utilities Index
• FTSE ST Financials Sector Index
• FTSE ST Technology Sector index
• FTSE ST Real Estate Index
• FTSE ST Real Estate Holding and Development
• FTSE ST Real Estate Investment Trusts

There is also a new FTSE ST China Index, which represents the performance of Singapore-listed companies that have a significant proportion of Chinese ownership. This means that they are at least 30 per cent owned by the Mainland Chinese government (directly or indirectly), non-Government linked Chinese companies or Mainland China residents or nationals.

No, the small cap index only includes Mainboard companies.

The FTSE ST Index Series constituents will be reviewed semi-annually in accordance with a set of publicly available Index Ground Rules. An Advisory Committee comprising market practitioners, SPH, FTSE and SGX will approve the changes. Details of the outcome of the review and the dates on which any changes are to be implemented will be published in advance of the implementation of the changes. The next review is scheduled for September 2008.

They will be discontinued.

We will respond to market demands accordingly.

The real-time "live" values of the STI and the other 18 indices can be accessed at http://btstocks.asiaone.com/keyIndices.html

By tracking the different sectors of the Singapore market, the new indices have helped investors make better-informed investment decisions. Previously, there were no such public benchmarks or indices for many segments of the Singapore market.

The new indices have increased the number of listed companies eligible for index inclusion to more than 200. Listed companies also benefit when investors are aware of and can easily refer to the sector they (listed companies) belong to. The indices are based on FTSE's international methodology, which includes minimum size rules, liquidity criteria and free float rules, which in turn means greater acceptance of the indices among institutional investors.