STI ETF a.k.a. SPDR Straits Times Index ETF

[weijian]

Hi Weijian,

You were right in terms of the addition of Keppel DC REIT.

I guess that Sembcorp Industries is still likely to be the next to go out when the next review happens.

hi Shrivathsa,

I was predicting that Keppel DC REIT would replace 1 of the SATS/Semb Ind/CDG, but it was added due to Capital land REITs merging instead, so I wasn't really "right" per say.

Now all these 3 companies seem to be recovered a bit - Semb Ind/CDG have announced some evolution plans and SATS has vaccination to thank for. But nonetheless, in current low interest rate environment and the quest for bigger AUM, those REITs in the reserve list will just continue to acquire new assets via rights/private placement/debt and be ever ready to replace those 3, if any of them stumble.

That said, unless SGX convinces Grab to do a secondary listing here, else STI ETF continues to be a banker + landlord.

[r0n]

Hi Weijian,

You were right in terms of the addition of Keppel DC REIT.

I guess that Sembcorp Industries is still likely to be the next to go out when the next review happens.

hi Shrivathsa,

I was predicting that Keppel DC REIT would replace 1 of the SATS/Semb Ind/CDG, but it was added due to Capital land REITs merging instead, so I wasn't really "right" per say.

Now all these 3 companies seem to be recovered a bit - Semb Ind/CDG have announced some evolution plans and SATS has vaccination to thank for. But nonetheless, in current low interest rate environment and the quest for bigger AUM, those REITs in the reserve list will just continue to acquire new assets via rights/private placement/debt and be ever ready to replace those 3, if any of them stumble.

That said, unless SGX convinces Grab to do a secondary listing here, else STI ETF continues to be a banker + landlord.

Grab or Sea are both good candidates for SGX to attract, being headquartered in Singapore and having market capitalisation in the billions. The odds of that happening (i.e. secondary listing on SGX) is still extremely low.

[weijian]

Low but not impossible. There is a higher chance for Grab though..

Spore is a Bantamweight, and performing at Lightweight (2 classes above). It is trying to go the next class Welterweight - we should all be cheering for it, rather than bring it down by comparing with US/HK markets.

Grab mulls secondary listing in Singapore home market: sources

GRAB Holdings, South-east Asia's ride-hailing to delivery giant, is considering a secondary listing in its home market of Singapore after completing a Nasdaq listing via a US$40 billion SPAC merger, three sources familiar with the matter said.

Listing on Singapore Exchange (SGX) would enable Grab to have an investor base close to where its regional business is based, the sources said, potentially offering its customers, drivers and merchant partners easier access to trade its shares.

https://www.businesstimes.com.sg/compani...et-sources

[weijian]

Unfortunate news as a local and familiar name is replaced by a "foreign talent".

Although we know CDG was always in danger (unlike SATS or Sembcorp which have rebounded off Covid lows in March2020), but it is a surprise to see Emperador, a secondary listing in mid July, replacing it. If we consider market cap, Nio (another company secondary listed in May2022) is ~4x bigger than Emperador but it did not replace CDG. So besides market cap, it seems that there are other factors like trading liquidity been considered.

Straits Times Index (STI) quarterly review

FTSE Russell announces that there will be one change to the constituents of the Straits Times Index (STI),
following the September 2022 quarterly review. Emperador has been added to the STI and ComfortDelGro has
been removed from the index.

https://links.sgx.com/FileOpen/20220901_...eID=730635

[btws548]

Unfortunate news as a local and familiar name is replaced by a "foreign talent".

Although we know CDG was always in danger (unlike SATS or Sembcorp which have rebounded off Covid lows in March2020), but it is a surprise to see Emperador, a secondary listing in mid July, replacing it. If we consider market cap, Nio (another company secondary listed in May2022) is ~4x bigger than Emperador but it did not replace CDG. So besides market cap, it seems that there are other factors like trading liquidity been considered.

Straits Times Index (STI) quarterly review

FTSE Russell announces that there will be one change to the constituents of the Straits Times Index (STI),
following the September 2022 quarterly review. Emperador has been added to the STI and ComfortDelGro has
been removed from the index.

https://links.sgx.com/FileOpen/20220901_...eID=730635

Indeed, this is surprising. Seems like the SGX Mainboard has too many entities in similar sectors or perhaps even similar geographic locations. Otherwise, a relatively new listing (while renowned in its own country but perhaps relatively unknown elsewhere) would not have been included in the index so soon.

[weijian]

Another landlord replaces an operating (holding) company, while 4 out of the 5 on the reserve list are landlords. With the recent 52k monthly rental for a HDB shoplot making the news, we can all agree that it is better to be landlord squeezing rents than operating a business in Spore, isn't it?

The one been replaced Jardine C&C, is however surprising though. While Jardine C&C hasn't been enjoying good times but its market cap of 7bil is still much higher than the smallest STI constituents of 3-4bil.

Keppel DC Reit to replace Jardine C&C on STI

Keppel DC Real Estate Investment Trust (Reit) will replace Hong Kong-based conglomerate Jardine Cycle & Carriage (C&C) on the benchmark Straits Times Index (STI), following a quarterly review.

Therefore, Internet service provider NetLink NBN Trust will replace Keppel DC Reit on the STI’s reserve list, said the index’s administrator, FTSE Russell, in a bourse filing on Thursday (Jun 5). The other four companies on the reserve list are CapitaLand Ascott Trust, ComfortDelGro, Keppel Reit and Suntec Reit.

https://www.businesstimes.com.sg/singapo...ine-cc-sti

[Shrivathsa]

Keppel DC REIT is probably one of the very few well managed REITs by Keppel (Please see the performance of Keppel REIT, and Keppel Pac Oak, both are in the dumps) so guess this rewards them as there is far higher interest in Keppel DC . That normally is a 20% inflation in value to be in STI. Guess we will probably see JCC reach the levels of sub 20 by year end. Valid point WJ, landlords are better than opco