Published:
These two firms might get kicked out of the STI as new liquidity rules roll in
Other firms are queueing to take their place.
Jardine Matheson and Olam International are most at risk of being kicked out of the benchmark Straits Times Index (STI) as tighter liquidity rules for constituents kick in.
Maybank Kim Eng said that these two firms have respective index weights of 7.03% and 0.33%, and a horde of other companies are likely to take their place.
“In their places, we believe UOL, CCT, YZJ, Suntec REIT and SingPost could be considered for inclusion. Given Jardine Matheson’s much larger market cap of SGD42b, we think any rejig of the index may benefit larger constituents such as the banks and Singtel whose combined weighting is 43.1% currently,” said the report.
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