Jardine Strategic to replace SIA Engg on STI benchmark

Jardine Strategic Holdings will join the benchmark Straits Times Index (STI) with effect from Sept 18, replacing SIA Engineering, said index administrator FTSE Russell yesterday.

The move was part of a regular review of the closely-watched index of 30 blue chip stocks.

Jardine Strategic has principal interests in Jardine Matheson, Hongkong Land, Dairy Farm, Mandarin Oriental, Jardine Cycle & Carriage and Astra International. It has a minority interest in Zhongsheng Group, one of China's leading motor dealership groups.

Controlled by the Keswick family, Jardine Strategic reported a 19 per cent jump in underlying profit growth in the first half of the year, from a year ago. It is traded in US dollars and its stock price has gained 24.5 per cent in Singdollar terms so far this year.

Upon its inclusion, Jardine Strategic is expected to command the seventh-largest weight of the STI, ranked between Hongkong Land and Keppel Corp.

SIA Engineering will join the STI Reserve List. This list, comprising the five highest-ranking non-constituents of the STI by market value, will be (in order of size) Suntec Reit, Mapletree Commercial Trust, Venture Corp, SIA Engineering and Keppel Reit. The STI Reserve List is used in the event that one or more constituents are deleted during the period up to the next quarterly review.

Upon its inclusion, Jardine Strategic is expected to command the seventh-largest weight of the STI, ranked between Hongkong Land and Keppel Corp.

The STI is a free float-adjusted market cap-weighted index representing the performance of the largest Singapore stocks which pass the size, free float, and liquidity screens.

This review was based on data from the close of business on Aug 21. The next review is Nov 30.

FTSE partners with Singapore Press Holdings and Singapore Exchange to jointly calculate the STI. The STI is widely followed by investors as the benchmark for the Singapore market and is used as the basis for a range of financial products including Exchange Traded Funds.

A version of this article appeared in the print edition of The Straits Times on September 01, 2017, with the headline 'Jardine Strategic to replace SIA Engg on STI benchmark'. Print Edition | Subscribe