Can the Straits Times Index hit a new all-time high?

MANY investors watch the Straits Times Index (STI) as a barometer for market sentiment.The performance of the bellwether index provides an indication of how Singapore's largest 30 listed companies are performing. The index is weighted based on market capitalisation, thus leaning towards companies that grow bigger over time.

Another interesting fact about the index is that it is subject to periodic reviews whereby components can be removed and replaced by other more suitable candidates.

This practice ensures that the STI remains representative of current trends and that the businesses within it provide an appropriate snapshot of a wide range of industries and sectors.