How to Buy Straits Times Index (STI) in Singapore 2025

The Straits Times Index (STI), Singapore's benchmark stock market index, has long been a cornerstone for investors seeking exposure to the region's economic growth and market performance. As we look ahead to 2025, the STI remains a compelling investment avenue in Singapore's market.

This guide will walk you through the essential steps and considerations to effectively invest in the STI, ensuring you are well-prepared to capitalize on Singapore's promising future.

STI Index Hits New Records in 2025

In 2025, the Straits Times Index (STI) surged to a record high. The Straits Times Index (STI) comprises the largest and most liquid blue-chip companies on the Singapore Exchange, representing a significant portion of the total market capitalization and trading value of all listed companies. On February 24th, the STI Index reached 3,951.64 points, surpassing the previous historic high of 3,906.16 points set in October 2007.

The STI Index's strong performance is a testament to the positive sentiment in Singapore's markets. Analysts attribute this rise to recent positive economic data and optimistic corporate earnings outlooks, which have boosted investor confidence.

What is the STI Index?

The Straits Times Index (STI) is a stock market index that represents the performance of the top 30 companies listed on the Singapore Exchange (SGX). The STI is a leading indicator of the Singaporean stock market and is widely followed by investors and market analysts.

The STI was first introduced in 1966 and has since become one of the most widely recognized stock market indices in Singapore. The index is calculated using a free-float market capitalization-weighted methodology, which means that the larger companies have a greater impact on the overall index value.

What Companies are in the Straits Times Index (STI)?

The Straits Times Index (STI) is made up of 30 leading companies chosen from those listed on the Singapore Exchange (SGX), representing a range of key industries and sectors within the Singaporean economy. These companies are carefully chosen based on their market capitalization and liquidity, making them significant players in the Singapore stock market.

While the specific companies included in the STI may change over time, they generally include blue-chip firms from various sectors such as finance, manufacturing, real estate, and telecommunications. To be eligible for inclusion in the index, a company must have a minimum market capitalization of S$300 million and a minimum trading liquidity of S$50 million.

What's the Best STI Investment for You?

Choosing the best investment from the Straits Times Index (STI) requires considering your financial goals, risk tolerance, and market analysis. Conduct thorough research, consider your risk appetite, and consult with a financial advisor to make an informed decision.

STI Individual Stock

Investing in individual STI stocks allows you to target specific companies with strong growth potential and solid fundamentals. Look for companies with consistent earnings growth, competitive advantages, and a positive industry outlook. Consider your risk appetite and investment horizon before selecting individual stocks.

STI ETFs

STI ETFs offer a basket of STI stocks, spreading your investment across multiple companies and sectors. Evaluate the ETF's tracking error, expense ratio, and liquidity before investing. Choose an ETF that aligns with your investment goals and risk tolerance.

Read Also: How to Invest in ETFs in Singapore

How to Invest in STI Index in Singapore

Investing in the Straits Times Index (STI) in Singapore is a popular way to gain exposure to the country's leading companies. Here's a concise guide on how to buy the STI Index, with a focus on using Moomoo SG for account opening:

1. Research and Understand the STI Index

Familiarize yourself with the composition of the STI Index, which includes the top 30 companies listed on the Singapore Exchange (SGX). Understand the index's performance history, risk-return characteristics, and potential for growth.

2. Open an Account with Moomoo SG

On moomoo app, sign up for an account by providing your personal details and completing the required verification processes. Go to "Market"> "SG" section > "STI" option. You will be presented with more detailed information about the index. By scrolling down, you will be able to view the list of companies that the STI index is comprised of.

3. Make Your Choice: Stock or ETFs?

Decide whether you want to invest in individual STI stocks or STI-tracking Exchange Traded Funds (ETFs). Individual stocks offer direct exposure to specific companies, while ETFs provide diversified exposure to the entire index.

In the following sections, we will delve deeper into the Top 10 Companies in the STI Index and the Top STI ETFs.

4. Place Your Order on Moomoo SG

How to place your order? Once your account is funded, log in to the moomoo platform. Search for the STI Index or the specific stocks/STI ETFs you want to invest in. Navigate the detailed page of the specific stocks/STI ETFs, and then click the "Buy" button.

Read Also: How to Deposit to Moomoo via Bank Transfer in Singapore

Top 10 Companies in the STI Index by Weight

The Strait Times Index (STI), a key benchmark for the Singapore stock market, comprises a diverse range of companies that reflect the economic health and diversity of Singapore. As of March 6, 2025, the top 10 largest constituents of the STI Index by weight are as follows, showcasing their significant influence on the Singaporean economy and financial markets.

DBS GROUP HOLDINGS (SGX: D05)

Weightage: 25.8%

DBS Group Holdings stands as the largest bank in Singapore and one of the leading financial institutions in Asia. With a comprehensive suite of financial services, including retail banking, investment banking, and private banking, DBS has established a strong presence not only in Singapore but also across Southeast Asia. On February 24th, 2025, DBS's stock reached a new all-time high.

Read Also: DBS Earnings Preview 2025: Top Singapore Stock Opportunities

OVERSEA-CHINESE BANKING CORP (SGX:O39)

Weightage: 15.3%

Oversea-Chinese Banking Corporation (OCBC) is the second-largest bank in Singapore, renowned for its robust financial services and global network. OCBC offers a wide range of banking solutions and has significant operations in Southeast Asia and Greater China. On February 19th, 2025, OCBC also reached a new high.

UNITED OVERSEAS BANK (SGX:U11)

Weightage: 12.6%

United Overseas Bank (UOB) is the third-largest bank in Singapore, known for its prudent financial management and extensive international footprint. With operations spanning Asia, Europe, and North America, UOB continues to strengthen its global presence. On February 19th, 2025, UOB also achieved a fresh peak.

SINGTEL (SGX:Z74)

Weightage: 7.4%

Singtel is Singapore's largest telecommunications company, providing a comprehensive range of communication services including fixed-line telephony, mobile communications, internet, and television services. It also holds stakes in telecommunications companies across Asia. On March 3rd, 2025, Singtel also set a new high.

SINGAPORE EXCHANGE (SGX:S68)

Weightage: 3.7%

The Singapore Exchange (SGX) is the sole stock exchange in Singapore and a vital financial hub in Asia. SGX offers a platform for trading stocks, bonds, futures, and options, facilitating capital raising and investment opportunities for businesses and investors. SGX reached a new high on February 10th.

JARDINE MATHESON HLDGS LTD (SGX:J36)

Weightage: 3.0%

Jardine Matheson Holdings is a diversified holding company with interests in various sectors, including automotive distribution, property, food and beverages, and more. With a strong foundation in Southeast Asia, Jardine Matheson continues to expand its portfolio and influence.

SINGAPORE AIRLINES (SGX:C6L)

Weightage: 2.7%

Singapore Airlines, the flag carrier of Singapore, is renowned for its excellent service and global connectivity. As one of the world's leading airlines, Singapore Airlines operates flights to destinations worldwide, contributing significantly to Singapore's aviation industry.

CAPITALAND INTEGRATED COMM TR (SGX:C38U)

Weightage: 2.6%

CapitaLand Integrated Commercial Trust (CICT) is a leading real estate investment trust (REIT) in Singapore, focusing on integrated commercial properties. With a diverse portfolio of shopping malls, office buildings, and mixed-use developments, CICT plays a crucial role in Singapore's real estate landscape.

SINGAPORE TECH ENGINEERING (SGX:S63)

Weightage: 2.5%

Singapore Technologies Engineering (ST Engineering) is a global engineering and technology group with expertise in aerospace, electronics, land systems, and marine engineering. ST Engineering's innovative solutions and services contribute to Singapore's position as a leading technology hub. ST Engineering also hits a new record on March 6, 2025.

KEPPEL CORP (SGX:BN4)

Weightage: 2.4%

Keppel Corporation is a diversified conglomerate with interests in property development, infrastructure, and investments. With a strong track record of delivering quality projects and sustainable growth, Keppel Corp continues to shape Singapore's urban landscape and economic development.

Top STI ETFs to Consider in Singapore

For investors seeking to gain exposure to the broader Singapore market, Exchange Traded Funds (ETFs) tracking the STI offer a convenient and cost-effective way to do so. There are two popular ETFs tracking the STI: the SPDR Straits Times Index ETF (SGX: ES3) and the Nikko AM Singapore STI ETF (SGX: G3B).

SPDR Straits Times Index ETF (SGX: ES3)

The SPDR Straits Times Index ETF is managed by State Street Global Advisors, a renowned asset management firm with a strong track record in ETFs. This ETF aims to replicate the performance of the STI by investing in the same companies in the same proportions as the index. SPDR Straits Times Index ETF hits new records on February 24, 2025.

Key Features

Low Cost: With a competitive expense ratio, the SPDR STI ETF is an attractive option for cost-conscious investors.

Liquidity: As one of the most traded ETFs in Singapore, the SPDR STI ETF offers high liquidity, making it easy to buy and sell.

Nikko AM Singapore STI ETF (SGX: G3B)

The Nikko AM Singapore STI ETF is managed by Nikko Asset Management, a leading asset management company in Asia. This ETF also aims to track the performance of the STI, providing investors with a straightforward way to invest in the Singapore stock market. Nikko AM Singapore STI ETF hits new records on February 24, 2025.

Key Features

Local Expertise: With Nikko AM's deep understanding of the Asian markets, including Singapore, the ETF is well-positioned to navigate the local market dynamics.

Competitive Pricing: The ETF offers a competitive fee structure, making it an appealing choice for investors.

Why Do Investors Pay Attention to the STI?

Investors generally invest in the STI because it provides a wide range of benefits. To begin, the STI includes 30 large publicly traded companies from a variety of industries, providing investors with diversification across sectors and helping to mitigate risk. It is also made up of highly liquid companies, meaning that it is relatively easy to buy and sell shares in these companies. This makes the index accessible to a wide range of investors.

The STI is also highly accessible to Singaporeans, where they can invest via brokerages or regular savings plans that are facilitated by local banks. Furthermore, investing in an STI index fund or ETF is generally less expensive than investing in actively managed funds, as there are no management fees or research costs associated with tracking the index. This makes the STI an attractive option for cost-conscious investors.

Historical Performance of the STI

The Straits Times Index (STI) has a long history of performance, with the index first being introduced in 1966. The STI has delivered strong returns for investors over the past decade, with a total return of 61% compared to 41% for indexes such as the Dow Jones, Hang Seng, Nikkei 225, and FTSE 100.

However, it is important to note that the stock market is inherently volatile and the value of the STI can fluctuate significantly over shorter time periods. The STI, like all stock market indices, is subject to market risks such as changes in economic conditions, interest rates, and political developments that can affect the performance of individual stocks and the index.

In recent years, the STI has experienced a series of ups and downs. In the late 1990s and early 2000s, the index reached all-time highs, fuelled by strong economic growth and favourable market conditions. However, the index was hit hard by the global financial crisis in 2008, declining by over 50% from its peak.

Since the financial crisis, the STI has recovered and has continued to deliver strong returns for investors. In the past decade, the index has experienced steady growth, apart from a few periods of market volatility.

Annual Dividends Generated by the STI

The STI pays out a relatively high dividend, with a dividend yield of 4% annually. Comparatively, other indexes such as the S&P500 pays out only 1.5% per year. Having a higher annual dividend yield may favour investors who are looking to generate a consistent passive income stream. The high dividend yields from the STI can be attributed to the strong dividend stocks in that the STI comprises, such as DBS, OCBC, and Keppel.

Invest in Straits Times Index (STI) with Moomoo SG

When it comes to investing in the Straits Times Index (STI) in Singapore, Moomoo SG stands out as a leading platform that offers a multitude of advantages to investors. Here's why you should consider investing in the STI through Moomoo SG:

Commission-Free Trading

Moomoo SG is committed to providing a seamless and cost-effective investment experience. With zero commission on SG stocks (1 year free-commission), you can invest in your favorite STI stocks or ETFs without worrying about hidden fees or charges.

Unleash Your Smart Investment Tools

Moomoo SG doesn't just offer a trading platform; it provides you with a suite of smart investment tools to help you make informed decisions. From real-time market data and advanced charting tools to personalized investment recommendations and risk management features, Moomoo SG equips you with everything you need to navigate the market with confidence.

A Secure and Regulated Investment Platform

Safety and security are paramount when it comes to investing your hard-earned money. Moomoo SG is fully licensed and regulated by the Monetary Authority of Singapore, ensuring that your investments are protected by stringent regulatory standards.

Conclusion

In 2025, the STI has reached new records, making it an attractive investment option. By understanding the various methods of investing in the STI, such as through individual stocks, ETFs, or platforms like moomoo, you can tailor your investment strategy to suit your financial goals and risk tolerance.

By researching the index, opening an account on Moomoo SG, deciding on your investment type, and placing an order, you can start your STI investment journey. Considering the top-weighted companies in the STI and the leading STI ETFs can further inform your investment decisions. Investing in the STI through Moomoo SG offers potential for growth and diversification in your portfolio.

Remember, investing is a journey that requires patience, discipline, and a willingness to learn and adapt. As you embark on this journey, stay informed, stay focused, and trust in your investment decisions. Sign up and download moomoo stock trading app today to get the news and information about the STI index now!