- SATS: +12%
- YangZiJiang: +11%
- STI ETF: 0%
- UOL: -1%
- Olam: -2%
- Jardine Strategic: -4%
- Jardine Matheson: -5%
Straits Times Index (STI) had 3 new members in the 30-stock index.
SATS, UOL and Yangzijiang have replaced Jardine Matheson, Jardine Strategic and Olam.
The announcement was made on 3 Sep 2015 and the change have taken effect on 21 Sep 2015.
It is common belief that stocks that were added into the index could be bidded up in price while the exited stocks would experience sell downs. But we need to verify if this is true for STI.
I went to Yahoo! Finance to chart the comparison among these stocks and also use STI ETF as a reference point. Below is how the chart looks like and you can click to enlarge the image:
Let me indicate the percentage changes in stock prices for the period 3-21 Sep 2015: