Below are the list of STI Constituents or Top 30 SGX stocks which made up our STI Index in 2019. These are heavy weighted stocks with market capitalisation ranging from over 1 billion to 50 billion. They provide a clear trending where STI will be heading to as their total market value may account to 70% of the total value of SGX listed companies in Singapore.
On a quarterly basis, this list of STI Constituents will be reviewed to ensure only the top 30 SGX listed companies are selected.
|Dairy Farm International Holdings||D01|
|HPH Trust USD||NS8U|
|YZJ Shipbldg SGD||BS6|
Source: SGX.com (Dated 22 April 2019)
Are These STI Constituents Overly Priced in 2019?
The overall PE ratio of STI is 13.90 as of 22 April 2019. I can say that it is not too high from an overall perspective. Though STI may be going a gradual upward trend to hit its historical peak at 3593, we are still technically in a flat market.
As a recap, STI does not give any indication whether a particular stock is undervalued or overly priced. But it does give a price movement indication of these STI constituents in the current market condition.
In conclusion, I am reluctant to be in aggressive in our local stock market. The outcome of Brexit, US-China Trade War and North Korea are still uncertainties. Whatever come high will come low. The story will repeat by itself again and again. The only difference as compared to the last stock cycle is the current flat market holds for a longer period of time before it starts to plunges. I think the best strategy now is still dividend play for those fundamentally good stocks and only a few selective undervalued stocks in overseas stock markets.