The Straits Times Index is Singapore's premier equityindex and the most widely used benchmark for the performance of equities traded on the Singapore Stock Exchange.
How Does the Straits Times Index (STI) Work?
The index is comprised of 55 of the exchange's most valuable firms. It is a modified value-weighted index, which is complicated in calculation, but ensures that the largest firms have the greatest impact on the index's value.
When taken together, the index's 55 components represent about 60% of the total market value of all issues traded on the Singapore Stock Exchange.
Why Does the Straits Times Index (STI) Matter?
The Straits Times Index is the most widely used Singapore stockmarket indicator, much like the DJIA is for the New York Stock Exchange.