The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
The revamped STI will comprise 30 blue-chip companies on the SGX mainboard, ranked by market capitalisation as of 31 August. The stocks have passed FTSEÆs international methodology, particularly its free float and liquidity requirements.
According to FTSEÆs guidelines, the free float of a listed company must be greater than 15% and the free float includes portfolio investments, nominee holdings and holdings by investment companies. A stock must also trade with a median daily turnover value of at least 0.05% of the value of its free float-adjusted shares in issue for at least 10 out of the last 12 months.
The revamped Straits Times Index and the new FTSE ST Index Series are aimed at stimulating the development of index-related products to serve diverse market needs. This in turn offers investors wider investment choices and opportunities in the Singapore market. With the availability of more indices, more listed companies can expect to be included in an index and achieve higher visibility with international fund managers and investors.
The indices should also result in more active trading of Singapore-listed stocks and this is instrumental in creating a more vibrant Singapore securities market.
The new STI will be a leaner one compared with the current, which has 48 stocks. Four new stocks will be added, while 22 will be dropped. Most of those coming off the index will be moved to a separate new mid-cap or a small-cap index.
The new additions to the STI are shipbuilder Yangzijiang Shipbuilding, palm oil giant Wilmar International, real estate developer Yanlord Land Group and aircraft servicing firm SIA Engineering.
The 18 new indices in the FTSE ST Index Series include an index series, sectors indices and a China-themed index made up of Chinese companies listed on the Singapore exchange that are among the top ranked according to the FTSE methodology. The China-themed index was created to reflect the increasing significant representation of mainland stocks in the Singapore market.
Trial values of the revamped STI and the other 18 new indices are already available. The trial values are meant to facilitate technical testing and do not replace the current STI values. FTSE Group deputy chief executive Donald Keith notes the trial index calculation period is an important element in the transition process and adds transparency for market users.
The composition of the STI starting 10 January:
Cosco Corporation Singapore
DBS Group Holdings
Fraser and Neave
Hong Kong Land
Jardine Cycle & Carriage
Neptune Orient Lines
Overseas Chinese Banking
Singapore Press Holdings
Singapore Technologies Engineering
United Overseas Bank
Yanlord Land Group
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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