As the index is weighted by traded market-cap, a declining share price would reduce the market cap further. Dropping out of the Index is a possibility and with its recent fluctuations, that seems more likely now than ever before. Currently at 30th place is Starhub. It has $4.5 billion market capitalisation. After the recent price decline, SPH’s market cap is about $4.3 billion. It would be interesting to see what happens in the next STI review in end Sep 2017.I was expecting it to be earlier but it took almost 2 years for this to happen. Most people could see it coming as the writing was already on the wall. Yue Sin has previously analysed the situation at SPH and it wasn’t pretty....
SPH (SGX:T39) is going to be replaced by Mapletree Industrial Trust as a Straits Times Index (STI) constituent on 22 Jun 2020.
Two years ago, I speculated that SPH could be kicked out of the STI,
