Dear readers, I have shared on SG Stocks Investing that going ahead, the Singapore Straits Times Index with its fair share of constituent stocks not performing too well, may comprise in the future more Singapore Reits and Trusts from the STI Reserve List which are more defensive.
My view was proven correct as it was announced on 5 Jun 2020 that Mapletree Industrial Trust, a member of the STI Reserve List has replaced Singapore Press Holdings in the Straits Times Index (STI) after the June quarterly review. The changes from the review will be with effect from 22 Jun 2020.
Earlier in end May 20, SPH was removed from the MSCI Singapore Index together with ComfortDelgro, SATS and Sembcorp Industries.
Together with Mapletree Industrial Trust, the Straits Times Index from 22 Jun 2020 will comprise five Reits and Trusts after CapitaCommercial Trust, CapitaMall Trust, Mapletree Commerical Trust and Mapletree Logistics Trust. Together, they will form one-sixth of the Straits Times Index (STI) constituent stocks.
The STI Reserve List will thereafter comprises Keppel DC Real Estate Investment Trust (Reit), Suntec Reit, NetLink NBN Trust, Frasers Logistics & Industrial Trust and Keppel Reit.
My view is that should SIA stock continue to falter, the stock is likely to be replaced by any of the reits and trusts in the STI Reserve List.
Or the STI stock to be replaced in the next review could also be SATS, Sembcorp Industries and ComfortDelgro which have all be removed from the MSCI Singapore Index if the stock prices of these stocks continue to falter. However, it is not necessary that every STI review will necessitate an update of the Straits Times Index.
But one thing for sure, if there are more Reits and Trusts in the Straits Times Index, the dividend yield of the Straits Times Index is likely to be higher.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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