Singapore STI outpaces peers in Asia Pacific, led by financials and utilities: FTSE Russell

Financials comprised 53% and real estate 17% as of September.

Singapore’s Straits Times Index (STI) has outperformed other Asia Pacific markets in the past two years, mainly due to financial, telecommunications, and utilities sectors, FTSE Russell said.

Its performance has been supported by high dividend yields, defensive market characteristics, and strong bank performance in a high-interest-rate environment, said Belle Chang, senior manager of the global investment research team at FTSE Russell.

Financials and real estate hold significant weights in the STI, with financials comprising 53% and real estate 17% as of September.

Meanwhile, telecommunications and utilities, despite their lower weights, have benefited from the AI cycle since 2022, contributing to the STI's 4.9% dividend yield, the highest in Asia Pacific as of October 2024.