If you are Value Investors that focus on Fundamental Analysis, I am sure ROE (Return On Equity) is a familiar indicator to you. For those who are not, basically ROE is a ratio (reflect in %) measuring a counter/index's financial performance. In layman term, this ratio tells us how much returns we can get for every dollar we invested in the counter.
According to the latest report from SGX, the ROE for STI is 10.2% over the past 12 months. It is sitting nicely in between Nikkei 225's 8.0% and Heng Seng Index's 13.8%. Obviously, in simple term, the higher the ratio, the better it is. Personally think that this is an healthy ROE ratio. Of course, if it can improve to 12 to 15%, that would be an even better ratio ;-)
Formula for ROE = Trailing 12 month NET INCOME / [Average of the ...
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