The Straits Times Index (SGX: ^STI), which is widely viewed as the stock market barometer for Singapore, is made up of 30 different blue-chip companies.
However, it is not always the same companies that make up the coveted list.
Every quarter, the index is reviewed and one or two of the 30 companies may be replaced.
The last change happened on 22 June 2020, when Singapore Press Holdings (SGX: T39) was dropped in favour of Mapletree Industrial Trust (SGX: ME8U).
Prior to that, Mapletree Logistics Trust (SGX: M44U) took the place of Golden Agri-Resources Ltd (SGX: E5H) in December 2019.
As such, it is possible that some of the current STI stocks may be replaced by other companies in the future.
Who are the candidates, you may ask? That’s where the reserve list comes in.
The STI blue-chip candidates
Meanwhile, the review also names five companies that form a reserve list of stocks....
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