The Singapore Stock Exchange (SGX) has created the STI 30, a benchmark index comprising the largest and most liquid companies listed on SGX. This represents approximately 80 per cent of the total market capitalization on SGX, making it an ideal indicator to track Singapore's overall performance.
By tracking this index investors can gain insight into the broad trends of the Singapore market and make more informed investment decisions. It is important to note that the STI 30 does not represent a diversified portfolio, so investors should be aware of the individual stock risk when investing in this index. The STI 30 serves as a key indicator for the overall performance of Singapore's economy, which makes it an essential tool for traders looking to capitalize on Singapore's growth.
The Singapore Index (also known as the Straits Times Index or STI 30) has a long history of fluctuating prices. Its lowest point was recorded on August 30th, 1998 at 800.27 and its highest peak was 3906.16 on October 7th, 2007. As a trader, it is important to keep track of this index to stay informed and be able to make the most profitable decisions related to STI 30.
With this knowledge, you can take advantage of opportunities or prepare yourself for tough times ahead. Knowing the price history can also help you assess risk versus reward scenarios and form strategies that have a higher chance of success in the long run. Keeping up with price movements can give you a competitive edge and help you stay ahead of the game.
The STI 30 includes a variety of different industries, such as financials (DBS Group Holdings and UOB), consumer staples (Singapore Telecommunications), real estate (CapitaLand), and energy (Keppel Corporation). Furthermore, some of the world’s largest companies are a part of the STI 30 list, such as Jardine Matheson and Wilmar International.
By knowing the list of top companies in the Singapore Index, you can gain a better understanding of the overall performance of this sector and make informed trading decisions. If you’re interested in investing or trading in this index, it would be beneficial to know who is included in the STI 30.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
What factors influence the Singapore Index?
Firstly, macroeconomic indicators play a crucial role, including GDP growth, inflation rates, and interest rates. Changes in government policies and regulations could impact the index, such as fiscal policies, trade agreements, and monetary policy decisions by the Monetary Authority of Singapore (MAS). Global economic conditions and geopolitical events also have an influence, as Singapore is a highly trade-dependent economy.
Sector-specific factors, such as performance in the finance, technology, and real estate sectors, could also significantly impact the index due to their significant representation. Additionally, investor sentiment, market liquidity, and foreign investor activity also contribute to the index's movements. Monitoring these factors and staying updated with relevant news and market developments is important for investors seeking to understand the influences on the Singapore Index.
How can I invest in Singapore Index?
One approach is to invest directly in the individual stocks that make up the index. This may be done by opening a brokerage account in Singapore and purchasing shares of the constituent companies according to their respective weights in the index. Another option is to invest in exchange-traded funds (ETFs), Contracts for Differences (CFDs) or mutual funds that track the performance of the Index. These investment vehicles provide diversification by holding a basket of stocks that replicate the index's composition.
Investors may also consider index futures or options contracts for exposure to the Index. It is important to conduct thorough research, consider investment objectives, and consult with a financial advisor to determine the most suitable investment approach based on individual circumstances.
What are the risks in trading the Singapore Index?
Firstly, market risk is inherent in any trading activity. Fluctuations in the index's value could result in potential losses if trades are not executed appropriately. Additionally, economic factors such as changes in interest rates, GDP growth, or global events could impact the index's performance. Liquidity risk should also be considered, as trading volume and liquidity may vary for individual stocks within the index.
Market volatility could also lead to price gaps and slippage, potentially affecting trade execution. Traders should also be mindful of leverage risk when using margins or derivatives, as gains or losses are magnified. It is important to conduct a thorough analysis, utilize risk management tools, and stay updated with relevant news and market developments to mitigate these risks.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.