Weightage for the 30 STI components stock! (13/04/10)

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I have just summarized the 30 components stocks that made up Straits Time Index (STI) and their respective weightage based on the market cap as of 13/04/10.

STI is a market capitalization weighted index and involves the total market capitalization of the companies weighted by their effect on the index. This means that larger stocks would make more of a difference to the index as compared to a smaller market cap company. (E.g. Capitalland (4.04%) will need to move “3 times more” as compared to Singtel (11.49%) in order to shift the STI)

It is always good to know what the respective weightage are for individual company and their effects on STI especially when trading STI ETF.

2 comments:

Anonymous said...

Hi,

I am very new to ETF and would like your advice.
1. How to go about buying ETF? I have an online trading account.
2. Any extra fee we need to pay?
3. Is it better to buy at different intervals or one lump sum?
4. What is a good entry price?
Hope to hear from you for you advice.
Thank you and best regards,
Carolyn

Dou said...

Hi Carolyn

1. How to go about buying ETF? I have an online trading account.

I love to buy ETF too. It is more diversify and not afraid of any down fall of one paritcular company.

2. Any extra fee we need to pay?

Yes, we need to pay extra fee as i understand from some broker firm. It really turns me off thus i did not buy ETF in the end.

3. Is it better to buy at different intervals or one lump sum?

First question is are u a investor (Long term) or trader (Short term)? Buying at different interval is always a better choice as of now since the market is not stable.

4. What is a good entry price?

Usually i do not recommend price like that. For me i will trade as i monitor the situation. I do not decide my price few weeks before. Do come to my blog often, i will try as much as possible recommend some good buys for my readers :P

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