Retail investors should be familiar with FTSE Straits Times Index (STI) while futures traders would prefer MSCI Singapore (SIMSCI). The purpose of these two indices is to provide a measurement of investment returns by selecting a basket of stocks listed on the Singapore Stock Exchange. The STI was constructed by Singapore Press Holdings and FTSE has refine the calculation with her methodology in recent years, MSCI is American while FTSE is British. Maybe because of Singapore’s British colony heritage that we chose to go with FTSE.

What is the difference?

I scoured through the methodologies briefly and found little differences in them. Both combined the elements of market capitalisation and liquidity (or transaction volume) to decide the stocks and their weightage in the indices. After scoring the Singapore stock universe, both indices came up with 30 constituents, and 25 of them are similar. See the constituents and the respective weightage ......