Discovering Growth Beyond STI: What the Mini STI Index Means for You
The Singapore Exchange (SGX) is about to launch an innovative new index called the Mini Straits Times Index (Mini STI Index), designed to track the performance of the next tier of large and liquid companies beyond the well-known Straits Times Index (STI).
This new index is poised to elevate Singapore’s small and mid-cap (SMID) market segment to a new level and offer investors broader opportunities.
Key Features of the Mini STI Index
The Mini STI Index focuses on companies meeting these main criteria:
A market capitalization greater than SGD 1 billion, a free float exceeding 15%, and sufficient liquidity—with trading volume surpassing 0.1% of the 52-week average daily volume relative to free float. The index intentionally excludes STI constituent stocks to provide meaningful insights into the “next layer” of large and liquid companies in Singapore.
The Monetary Authority of Singapore (MAS) encourages stronger investor participation and has introduced initiatives to help companies unlock shareholder value, especially those with significant cash reserves or valuable assets such as property or land. This regulatory support aims to improve corporate governance and increase returns for shareholders.
UOB Kay Hian’s Research and Top SMID Picks
UOB Kay Hian published a list of 39 companies likely to be included in the Mini STI Index, screened by the three main criteria above. Among these, six companies are top picks because of strong growth potential and sound fundamentals:
$Food Empire (F03.SG)$ is a food and beverage company expanding its production capacity in Southeast Asia, setting the stage for healthy earnings growth supported by solid profitability and a dividend yield above 3%. $Sheng Siong (OV8.SG)$ continues to grow its retail footprint with consistent store openings, boasting a high return on assets and stable dividends, making it a strong player in Singapore’s retail sector.
$CSE Global (544.SG)$ benefits from booming data centre contracts, showing impressive profit growth and efficiency, while $ChinaSunsine (QES.SG)$ offers a unique value proposition as a cash-rich rubber chemical leader trading at an attractive discount to peers. $MarcoPolo Marine (5LY.SG)$, supported by a new fleet and shipyard expansion, balances growth potential with strong cash reserves. Meanwhile, $Valuetronics (BN2.SG)$ stands out with steady business fundamentals, a solid cash position, and near 5% dividend yield, poised for gains from new customer contributions.
Other important prospective members include $YZJ Fin Hldg (YF8.SG)$, $Keppel Reit (K71U.SG)$, $Suntec Reit (T82U.SG)$, and $Golden Agri-Res (E5H.SG)$, covering sectors such as REITs, consumer services, industrials, commodities, and financials.
Plus, UOB Kay Hian also sited other noteworthy candidates for the Mini STI:
Each company in this group brings a unique value proposition, from high free float and robust liquidity to sector leadership or deep value characteristics.
What a New Index Brings to The Table?
The launch of the Mini STI Index benefits the Singapore equity market and investors in several ways:
1) Broader Market Access: It extends coverage beyond the STI’s top 30 companies, allowing investors to tap into a wider universe of sizeable, liquid mid-cap stocks, enhancing diversification possibilities.
2) Better Liquidity and Visibility: Firms included meet high standards of liquidity and free float, increasing market activity and visibility. This often leads to valuation improvements as more investors recognize the opportunities in this segment.
3) Unlocking Shareholder Value: MAS initiatives promote companies with strong cash reserves or valuable assets to use capital more effectively, improving governance and potentially increasing dividends or share buybacks.
4) Complementing the STI: Together, the STI and Mini STI indices create a comprehensive picture of Singapore’s equity markets, balancing stable blue chips with dynamic growth companies, and improving market depth and resilience.
MAS Deputy Chairman Chee Hong Tat stated that the Mini STI will provide a useful perspective on the “next layer” of large and liquid companies, distinct from the STI constituents.![]()
Market watchers welcomed the move, with RHB Bank analyst Shekhar Jaiswal calling it “strategic and constructive”.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Market Insights
Hot Topics Hot Topics
Trump's 'Taco deal' sparks market rebound : Market rebound sustainable ?
1. If tariffs pause, which sectors benefit first? 2. Trump's "threat-compromise" cycle normalizes—how to hedge across assets?
Moo Options Explorer
Apr 7 17:28
Weekly roundup: Tariff turmoil and recession fears dominate
Moo Options Explorer
Mar 31 17:01
Weekly roundup: Tariff concerns and Tesla’s rollercoaster ride
SGMidasTouch : SG stocks are super stable, I made 45% from them.
105487287 : ask all ready take div ?
KCLC KCLC SGMidasTouch : What did you buy?