HSI's facelift sparks calls to revamp STI to include key growth sectors

Singapore

NEWS of the Hang Seng Index's (HSI) soon-to-be facelift has led market watchers to voice support for a similar revamp of the Straits Times Index (STI) to include more representation in other key growth sectors, while easing its heavy bias towards real estate stocks and banks which make up three-fifths of the index's market cap.

Suggested sectors that could be added include technology, healthcare, e-commerce, manufacturing, materials, logistics and consumer services, but they also caution that it would be an uphill task to find a middle tier of companies with sufficient investor interest to fill the sector void.