海指上涨7.65点　创6年来新高

2006-02-06　6:15 pm


　　（新加坡讯）海峡时报指数今天继续攀升，上涨至6年以来的新高点。

　　海峡时报指数今天上涨7.65点，闭市报2448.73点，升幅达0.3％。这是自2000年1月4日以来的最高点。

　　同时，交易量高达20亿股，是自2003年10月以来最多的一天。

《联合早报网》

Ge Wei Qian Bei,

I'm a new comer and want to gain some knowledge on trading stocks. I have a question about STI:
1. What conclusion can we draw from the rise/fall of STI?
2. What impact does STI have on our decisions to buy or sell stocks?

Thank you very much!

The component stocks of STI basically indicate the leadership in their sector/ industry. eg. CityDev and HK Land are the leaders in property industry. However, they only represent the listed companies in the Singapore stock market and may or may not be the entire Singapore market. One good example is the biggest property company in Singapore is Far East Organistion who is not listed in the SGX.

When most of the STI component stocks move up, you should see the broad stock market move in the same direction and vice versa. When the market is moving from sector to sector, you will not see much changes in the STI mainly because some sectors move up and others move down. Hence, there are some balancing in the STI.

There are other indices in Singapore market that you should like at and not just STI which is only an index for blue chips listed with SGX. To help in your trading, one should look at other indices such as:

UOB-sesdaq ==> 2nd liner
All finance ==> finance sector
All properties ==> property sector
All Mfg ==> manufacturing sector
etc.

Besides these indices, the Simsci (Singapore Morgan Stanley Composite Index) sometimes gives a better feel of the market comparing with STI.

Unfortunately, there is no one comes out with an All-China stock index,so far.

Conclusion: STI gives you a broad market view and should not affect your decision (that much) in trading SGX stocks unless you are trading blue chips.

The above is just my personal opinion of the STI and hope it helps you in one way or another.

Cheers !!!

'you should like at' should be read as 'you should look at'.

My apology.

Really deep insights!