FTSE announced Jardine Strategic will substitute SIA Engineering as Straits Times Index (STI) constituents w.e.f 18-Sep-2017 following the semi-annual review to the FTSE ST Index Series.
We're curious about the impact to share prices of Jardine Group of stocks following the announcement. Among the 30 STI component stocks, there are already 3 Jardine Group stocks currently - Jardine Matheson, Jardine Cycle & Carriage, HongKong Land, while Dairy Farm, Mandarin Oriental International are also SGX listed Jardine Group stocks currently.
Moreover, these stocks are highly related to each others - Jardine Matheson and Jardine Strategy are owning significant stake of each others, while Jardine Strategy owning significant stakes in Jardine Cycle & Carriage, HongKong Land, and also Dairy Farm, Mandarin Oriental International.
Apparently, there wasn't significant impact as yet, from the both the perspectives of share price and trading volume.
However, we saw SIA Engineering down ~3% with average daily trading volume of past week heavier than 3-month and 52-week average daily volume as of 31-Aug-2017.
Following the review, STI Constituents reserve list will be updated as follow, w.e.f 18-Sep-2017.
Using the average target prices of STI component stocks we've gathered, applied with the component weightage respectively, we derive the potential upside of Straits Times Index. With this bottom-up approach, as of 8-Sep, the Straits Times Index has potential 12-month upside of 7.74%.
Visit Straits Times Index Market Caps, Analyst Ratings and Target Prices for the latest updates.