The New Approach to the FTSE ST Mid Cap Index
OREANDA-NEWS. The FTSE ST Mid Cap Index constituents must continue to pass size, free float and liquidity screens. Constituents of the index are selected from stocks which pass these screens, and fall within a market capitalisation band of 68% to 86%. This band is built around the principle that the large caps will represent approximately 70% of the combined market capitalisation of eligible stocks, and the small caps will represent approximately 10% of the combined market capitalisation of the eligible stocks.
With changes to the methodology, there are now 49 constituents and a coincidental overlap with as many five STI stocks – Golden Agri-Resources, SIA Engineering, Noble Group, SATS and Yangzijiang Shipbuilding Holdings. Four of them are amongst the 10 largest weightings in the FTSE ST Mid Cap Index.
The FTSE ST Mid Cap Index has a combined market capitalisation of S$112.0 billion. As of the end of September, more than half the total market capitalisation associated with the index was made up of freely floated shares. The average total market cap of a constituent stood at S$2.1 billion as at end-September. The constituents of the FTSE ST Mid Cap Index are free float-weighted and the 10 largest weightings account for 45% of the Index. These 10 stocks are tabled below.
Source: SGX, Bloomberg & SGX StockFacts (Data as of 26 October 2015)
The 10 index heavyweights are on average trading 25% above their 12-month lows and 17% below their 12-month highs. The stock that has seen the greatest swings between 12-month highs and lows is Noble Group, which closed yesterday 47% above its 12-month low and 57% below its 12-month high. The stock that has swung the least among the 10 was Venture Corporation, which closed yesterday 13% above its 12-month low and 3% below its 12-month high.
As further detailed below, 10 of the index heavyweights are Real Estate Investment Trusts (REITs) and all 10 pay dividends, with the yield currently averaging 4.7%. Six of the 10 stocks have generated dividend-inclusive gains in the year thus far, whilst four have generated declines. The average total return of the 10 stocks was -1.2%.