The Straits Times Index (STI), a key market barometer for Singapore, has achieved a significant milestone by crossing the 4,000 mark. This achievement underscores the strength and resilience of Singapore’s financial markets. The STI, which comprises 30 of the largest and most liquid companies listed on the Singapore Exchange, has been a benchmark index since its inception in 1966.
Over the past three years, the STI has delivered a total return of 40%, with a compound annual growth rate (CAGR) of 11.9%, outperforming the S&P 500 Index, which recorded a total return of 31% and a CAGR of 9.4%. This performance highlights the robust returns that the STI has provided to investors over the years.
Two Exchange Traded Funds (ETFs) have been launched since 2002, allowing investors to track the performance of the STI. These ETFs have amassed a combined record of S$2.5b in assets under management, reflecting investor confidence in the index’s performance.
The Singapore Exchange (SGX) continues to support investors with comprehensive research reports available on their website, ensuring that investors remain informed about market developments. Elgin Seah from SGX’s Marketing & Communications department emphasised the importance of these updates in showcasing the resilience and performance of Singapore’s financial markets.
As the STI reaches this new milestone, it serves as a testament to the enduring strength of Singapore’s economy and its financial markets. Investors and market participants will be closely watching for further developments and opportunities as the index continues to evolve.
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