The Straits Times Index (STI) crossed the 4,000-point mark for the first time on March 28, notching a peak of 4,005.18 points within the first 10 minutes of trading.
The benchmark index was buoyed by gains among DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC), ST Engineering, Singapore Exchange (SGX), CapitaLand Ascendas REIT , Keppel and Wilmar.
The STI opened on March 28 at 3,997.56 points. Prior to the midday break, the index was up 6.61 points, or 0.17%, at 3,988.18 points.
The STI closed 9.14 points lower, or 0.23% down, at 3,972.43 points on March 28.
The STI closed on March 27 at 3,981.57 points after breaking through the 3,990-mark for the first time earlier that day.
Among its 30 constituents, SGX market strategist Geoff Howie noted that ST Engineering and Sembcorp Industries had been "leading the charge".
The industrials sector has booked the most net institutional inflow this month, according to Howie, bucking broader net outflows.
The STI had crossed the 3,900-mark on March 18.
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Daphne Tan, director of business development at CMC Markets Singapore, says: “The STI breaking 4,000 is a key psychological milestone, which could be interpreted as strong investor confidence, resilient blue-chip performance, and a favourable economic climate. Strong contributors in the STI include the banking and telecommunications sector. Breaking this level suggests a strengthening sentiment, but sustaining it would depend on global stability and market fundamentals.”
The STI was started in 1966.
It delivered a total return of 40% over the last 3 years (CAGR of 11.9%), even surpassing the S&P 500 Index, which gained 31%, or a CAGR 9.4%.
Furthermore, two Exchange Traded Funds (ETFs) have been launched since 2002, allowing investor access in tracking the performance of the index, with a combined record of S$2.5 billion in assets under management (AUM).
Table: Bloomberg
