A brief summary of my understandings of STI...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 ==> finan (more...)