SINGAPORE - Contract manufacturer Venture Corporation is scheduled to join the Straits Times Index (STI) with effect from Jan 5, replacing Global Logistic Properties (GLP) which is being taken private.
The last trading day for GLP is expected to be on Jan 4.
The STI is a free float adjusted market capitalisation weighted index representing the performance of the largest Singapore stocks which pass size, free float and liquidity screens.
Venture was selected to join the STI as it maintained the highest market capitalisation of the STI Reserve as at market close on Jan 2.
The STI Reserve List is used in the event that one or more of the STI constituents are deleted during the period up to the next quarterly review. The other four stocks on the STI Reserve List are Suntec Reit, Mapletree Commercial Trust, Keppel Reit and Sembcorp Marine.
Without taking into consideration the performances of all STI constituents, the recent relative performance of Venture indicates that its weight in the STI could be as high as 1.8 per cent upon inclusion on Jan 5.
Venture generated a 115.4 per cent total return in 2017, with institutional net buying totalling S$133 million. Its net profit grew 81.4 per cent year on year in the nine months to Sept 30.