When we invest in the STI, we are gaining exposure to a diverse and strong group of companies – or more commonly termed the 30 largest and most liquid companies – listed on the Singapore Exchange (SGX).
Often, this is part of a passive investing strategy and to achieve market returns. While investors can take a hands-off approach and just let their investments grow over a long horizon, the STI itself is regularly reviewed and updated if there is a need.
Precisely four new companies have been added into the STI since 2018, and here are how they have performed.
Mapletree Logistics Trust (SGX: M44U)
MLT was the latest addition to the STI on 23 December 2019 with an approximate weightage of 1.6%. This also made it the second Mapletree REIT – after Mapletree Commercial Trust – and the fifth REIT to be part of the STI. In total, REITs now comprise close to 10% weightage of the STI.
With the addition of MLT, Golden-Agri Resources had to make way on the STI.
MLT has a market capitalisation of more than $6.6 billion and achieved a total return of 45% in 2019. Since being listed on the STI on 23 December 2019, its share price has already risen close to 1.8% to $1.73. At its current share price, MLT pays out a distribution yield of nearly 4.7%.
Mapletree Commercial Trust (SGX: N2IU)
MCT, the first of the two Mapletree REITs on the STI today, was added as a constituent recently as well, on 23 September 2019. MCT replaced Hutchison Port Holdings Trust on the STI.
With a market capitalisation of over $7.5 billion, MCT achieved a total return of over 52% in 2019. Since its addition into the STI, its share price has risen 5.3% to $2.39. At its current share price, it is paying a distribution yield of 4.0%.
Dairy Farm International (SGX: D01)
Dairy Farm was included in the STI on 24 September 2018. As you can see, there was a one-year period after its addition before another constituent was added to the STI. Dairy Farm took the place of StarHub on the STI.
Dairy Farm is part of the Jardine Matheson Group, which is also another constituent of the STI, and three other associated companies on the STI, including Jardine Strategic Holdings, Jardine C&C and HongKongLand.
Listed in US Dollars at a market capitalisation of over US$7.7 billion ($10.4 billion), Dairy Farm also withstood a turbulent year with a total return of -34% in 2019. Since being added to the STI on 24 September 2018, its share price has plunged nearly 58% to US$5.75. At its current share price, it pays a dividend yield of 3.7%.
Venture Corporation (SGX: V03)
Venture was inserted into the STI on 5 January 2018. Its addition was slightly different to the other additions, as it replaced the delisted Global Logistics Properties (GLP).
Venture has a market capitalisation of $4.7 billion and has seen a 23% rebound in its share price in 2019. This comes on the heels of a nearly 35% decline in share price since it was featured on STI. At its current share price of $16.34, it is paying a dividend yield of close to 4.3%.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.