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Revamped STI, 18 new indices go live Jan 10 - Dec 11, 2007 (BT)

BackDec 11, 2007

The Straits Times / The Business Times News On SPH

Revamped STI, 18 new indices go live Jan 10

The revamped STI and new index series aim to stimulate the development of index-related products to serve diverse market needs.

By Vincent Wee
Dec 11, 2007
The Business Times

MARKET pundits have something to look forward to soon when the revamped Straits Times Index (STI) goes live on Jan 10.

Singapore Press Holdings, Singapore Exchange and FTSE Group yesterday announced the date on which the benchmark index - as well as 18 other new indices in the FTSE ST Index Series - come into effect.

The opening value of the revamped STI on Jan 10 will be the same as the closing value of the index in its current incarnation on Jan 9. This will ensure continuity, the three parties said a joint statement yesterday.

And to facilitate historical analysis of the revamped 30-stock STI based on the new FTSE methodology, a re-created history going back to Aug 31, 1999 will be made available by FTSE the day after it goes live.

The other 18 new indices that FTSE is creating also start on Jan 10. Their trial values have been calculated since Oct 8, with all of them starting at 1,000. When they go live, their opening values will be the same as the closing trial values on Jan 9. These trial values are are available at the http://www.ftse.com/st website of FTSE.

The revamped STI and new index series aim to stimulate the development of index-related products to serve diverse market needs, yesterday's statement said. This will give investors greater investment choice and opportunities, it added.

The wider range of indices also means more listed companies to be included in an index, which will boost their visibility with international fund managers and investors.

Earlier reports have said that the STI's reduced number of stocks will be a boon to international fund managers because they will have fewer underlying stocks to buy to replicate the index for the tracker-type funds some of them run.