SGX’s new index needs clear differentiators to avoid being ‘just another index’, say analysts
While it can raise the profile of larger non-STI stocks and attract fund products, analysts call for more clarity on criteria for inclusion
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[SINGAPORE] A new index due to be launched by the Singapore Exchange (SGX) could be framed as one that tracks companies earning more than 70 per cent of their revenues at home, or an index centred on mid to large-cap stocks valued at up to S$20 billion, market watchers suggested.
The new index, which will exclude constituents of the Straits Times Index (STI), is meant to “provide a useful lens to track how the next tier of large and liquid companies are evolving”, deputy chairman of the Monetary Authority of Singapore (MAS) Chee Hong Tat said on Friday (Sep 12).
Market watchers welcomed the move, with RHB Bank analyst Shekhar Jaiswal calling it “strategic and constructive”.
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