The Smart Investor
    Facebook Instagram
    Wednesday, August 10
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Blue Chips»The Top 10 Most Influential Blue Chips in the Straits Times Index
    Blue Chips

    The Top 10 Most Influential Blue Chips in the Straits Times Index

    There are 30 blue chip companies that make up the Straits Times Index (STI). But the largest four account for almost half the index’s weightage.
    Chin Hui LeongBy Chin Hui LeongAugust 31, 20213 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    The Straits Times Index (SGX: ^STI) is home to 30 of the largest companies in Singapore. 

    As such, the index is widely regarded as the market barometer for the Singapore stock market.

    While there are 30 companies in total, the largest among the STI components hold more sway in the index compared to others. 

    Let’s take a look at which are the 10 biggest blue chips. 

    Company Ticker SymbolIndustrial Classification Benchmark (ICB) SubsectorIndex Weight
    DBS Group HoldingsD05Banks18.1%
    Oversea-Chinese Banking CorporationO39Banks14.3%
    United Overseas BankU11Banks11.2%
    Singapore TelecommunicationsZ74Telecommunications Service Providers5.7%
    Jardine Matheson HoldingsJ36General Industrials5.5%
    CapitaLand C31Real Estate Investment and Services Development3.4%
    Ascendas REITA17UReal Estate Investment Trusts3.4%
    Singapore Exchange S68Investment Banking and Brokerage Services3.2%
    CapitaLand Integrated Commercial TrustC38UReal Estate Investment Trusts3.1%
    Wilmar International LimitedF34Food producers3.0%

    Source: FTSE ST Index Series factsheet, as of 30 July 2021

    Blue chips, defined

    Due to their size, STI component stocks are often referred to as blue chips. 

    Blue-chip companies are generally defined as large, well-capitalised companies with a long operating track record and a distinctive brand name.

    These businesses are usually market leaders in their respective industries and have a dominant competitive edge over smaller competitors.

    The Big 10 blue chips

    As it stands, the top 10 companies within the Singapore index account for over 70% of the index’s weightage, as shown in the table above. 

    In fact, Singapore’s three major banks, DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corp. Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11), account for a whopping 43.6% of the STI.

    If you add the next largest company, namely Singapore Telecommunications Limited (SGX: Z74), the top four companies would account for almost half of the index’s weight.  

    Recovery in sight

    There has been some good news, with Singapore moving from a COVID-zero approach to living with COVID.

    Singapore’s three big banks have restored their dividend payouts to previous levels or above after the Monetary Authority of Singapore (MAS) lifted dividend restrictions.

    Speaking of positive news, Singtel reported a return to profit in its latest quarter after suffering a loss in its fiscal first quarter a year ago.  

    The profits will come in handy as Singapore’s largest telco attempts to transform its business.

    Changes are also afoot at CapitaLand (SGX: C31) where its property development arm will be privatised, leaving behind a restructured real estate investment manager (REIM) renamed as CapitaLand Investment Management (CLIM).

    Before its exit, CapitaLand delivered a final hurrah, with strong results in its final quarter in its current form.  

    Elsewhere, compared to our last review in September 2020, CapitaLand Integrated Commercial Trust (SGX: C38U) has made its move into the upper echelons in terms of index weightage. 

    The real estate investment trust was formed through a merger of CapitaLand Mall Trust and CapitaLand Commercial Trust in November 2020. 

    Looking for more dividend stock ideas? Then you’ll want to know about these 5 strong SGX companies. We’ve prepared everything you need to know in a FREE special report: “Dividend Stocks That Can Pay You For Life”. Click here to download now.

    Follow us on Facebook and Telegram for the latest investing news and analyses!

    Disclosure: Chin Hui Leong owns shares in DBS Group, OCBC, UOB, CapitaLand Integrated Commercial Trust, and Singapore Exchange.

    Yahoo
    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    5 Singapore REITs That Upped Their DPU in August

    August 10, 2022

    3 Singapore Blue-Chip Stocks Raising Their Dividends Before National Day

    August 9, 2022

    Sembcorp Industries Doubles its Interim Dividend: 5 Highlights from its 1H2022 Earnings

    August 9, 2022
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2022 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.