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Mapletree Industrial Trust to replace SPH in STI
MAPLETREE Industrial Trust will join the benchmark Straits Times Index (STI) from June 22, replacing Singapore Press Holdings (SPH), following the latest quarterly review of the STI by FTSE Russell.
The STI reserve list was also announced, comprising the five highest-ranking non-constituents by market cap, mostly made up of real estate investment trusts (Reits). In order of size, they are Keppel DC Reit, Suntec Reit, NetLink NBN Trust, Frasers Logistics & Commercial Trust and Keppel Reit.
Stocks on the reserve list will replace any constituents that become ineligible as a result of corporate actions before the next review. The next quarterly review of the STI will take place in September 2020.
The STI, Singapore's main stock market benchmark is jointly calculated by FTSE Russell, the index administrator; SPH, which publishes The Business Times; and the Singapore Exchange (SGX).
It is reviewed quarterly in accordance with the index ground rules and to facilitate the inclusion of eligible initial public offering stocks. The FTSE ST methodology ensures the indexes accurately represent the investable universe for benchmarking purposes and can be easily replicated as the basis of index-linked products.
SPH was also among the four blue chips that were dropped from the MSCI Singapore Index in May. The other companies were land transport company ComfortDelGro Corporation, aviation support services provider Sats and conglomerate Sembcorp Industries.
An SPH spokesman said: "The global economy, including Singapore, has been battered by the Covid-19 pandemic. SPH has not been spared in this challenging business environment.
"However, we have a resilient balance sheet to weather the impact from Covid-19. We will continue to transform the media business with digital innovations and grow our recurring income as well as diversify our revenue streams. We also review our existing businesses and investments regularly with a view to recycling capital and enhancing capital management with the aim of delivering sustainable shareholder returns."
Shares of SPH closed up 0.7 per cent or S$0.01 at S$1.37 on Thursday.