In the first three sessions of 2013 the Straits Times Index (STI) firmed +1.84%. This morning’s open extended the 2013 gain to +2.11%. The strongest sector index over the last three sessions has been Basic Materials, followed by Consumer Goods. While all Sector Indices provided by FTSE Group are in the green over the first three sessions of 2013, all have performed differently. The REIT index gained the least over the three sessions.
 
Dividing investments over different sectors is common practice for investors that seek to diversify risk and return. Consider the recent different performances and constituents of the FTSE ST Oil & Gas Index and FTSE ST Telecommunications Index. The FTSE ST Oil & Gas Index is made up of 12 stocks versus the FTSE ST Telecommunications Index which is made up of 3 stocks.
 
On Friday, the FTSE ST Oil & Gas Index declined ...