The SING Stock Index, or the Straits Times (STI), is Singapore's benchmark stock market index. It is calculated based on the stocks of the 30 largest and most liquid companies listed on the Singapore Exchange (SGX).
Companies are added to the index based on market capitalization and trading frequency data. SING represents the leading sectors of the Singaporean economy, including finance, industry, consumer goods and services, technology and telecommunications, and the raw materials industry. The most famous companies included in the index are financial holding DBS Group, telecommunications company Singtel, multinational conglomerate Jardine Matheson, industrial corporation Keppel, and Singapore Airlines.
Like other stock indices, SING is not an independent trading instrument, as it is a coefficient. Investing and trading the index is only possible indirectly. First, through the purchase of stocks of companies on the basis of which it is calculated. But this is a difficult path that requires a lot of capital and does not guarantee profits. Second, through the purchase of derivatives such as options, futures, ETFs, and SING-based mutual funds.
Another option is CFD trading. In this case, you can indirectly trade the SING stock index without purchasing the assets included in it. CFD traders profit both in rising and falling markets by predicting the price direction.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
