What is the Straits Times Index Singapore Exchange

What is the Straits Times Index (STI)? Here’s Everything You Need to Know

If you’ve ever looked into the Singapore stock market, the name Straits Times Index (or STI) definitely pops up everywhere. I’ve done a deep dive to understand what it’s all about — from its purpose and history to how you can invest in it today using cash, ETFs, futures, and even options.

So, What Exactly Is STI?
The Straits Times Index (STI) is the benchmark index for Singapore’s stock market. It tracks the top 30 companies listed on the Singapore Exchange (SGX), selected based on their market capitalization and liquidity. These are basically the most established and actively traded stocks in Singapore.

Think of the STI like Singapore’s version of the Dow Jones or Nifty 50 — it reflects how the overall economy and stock market are performing.

A Quick Look at Its History
The STI was launched in 1998, replacing the older Straits Times Industrial Index. It's managed by the FTSE Russell, in partnership with SPH Media and the Singapore Exchange. The index is reviewed quarterly to keep only the strongest 30 stocks.

Some of the well-known names currently on the STI include:

• DBS Group Holdings

• OCBC Bank

• UOB

• Singtel

• Keppel Corp

• CapitaLand Integrated Commercial Trust (CICT)

How Can You Trade or Invest in the STI?

There are a few ways you can get exposure to STI:

1. STI ETFs (Cash Market)
   The easiest way for retail investors like us is through ETFs (Exchange-Traded Funds). The two most popular STI ETFs are:

   • SPDR Straits Times Index ETF

   • Nikko AM STI ETF

   You can buy these just like any stock through your brokerage account, and it gives you instant exposure to all 30 STI stocks in one go.

2. STI Futures
   If you’re into derivatives, STI futures are available on SGX. They’re popular among institutional and retail traders for hedging or speculating on the market’s direction.

   • Trading Hours:
     Monday to Friday:

     • T Session: 8:30 AM – 6:15 PM SGT

     • T+1 Session: 7:15 PM – 2:00 AM (next day)

   • Contract Size:
     Each contract is worth S$10 x STI level. So if the STI is at 3,300, one contract is worth S$33,000.

   • Tick Size & Value:
     Tick size is 0.5 index points, so each tick = S$5.

3. STI Options
   STI options are also traded on SGX and are European-style (exercised only at expiry). They let you take positions with limited risk and are used for income or hedging.

   • Lot Size: Same as futures — based on STI level × S$10

   • Expiry: Monthly expiry, usually on the last Thursday of the month.

Why Investors Use STI

• Diversification: With one trade, you're investing in Singapore’s top companies across banking, real estate, telecom, and more.

• Dividends: STI ETFs tend to pay dividends based on the underlying stocks.

• Hedging: Futures and options help protect portfolios during volatile times.

• Speculation: Traders use derivatives to bet on short-term movements.

Final Thoughts
The Straits Times Index is more than just a number — it’s a powerful tool for both long-term investors and short-term traders. Whether you’re investing through an ETF or trading futures and options, the STI gives you a reliable view of Singapore’s economy.

If you’re into the Singapore market, I think it’s worth understanding how the STI works — and maybe even considering it in your portfolio.

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