STI kicks out Hutchison Port Holdings Trust
Its market cap plunged 84% since IPO to $1.93b.
Bloomberg reported that Hutchison Port Holdings Trust will be removed from Singapore’s Straits Times Index (STI) after a dramatic fall in its market value amidst rising global trade tensions, the index provider said in a statement.
The move marks the end of an era for the Li Ka-shing backed container port trust in Hong Kong, whose initial public offering in 2011 was amongst the biggest that year. Its market capitalisation has dropped 84% since IPO to around $1.93b (US$1.4b), the lowest amongst the 30 constituents of the STI, according to data compiled by Bloomberg.
The decline was accompanied by falling operating income since 2016 due to weakened trade demand.
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