StarHub removed from STI and Dairy Farm added after quarterly review

Singtel, StarHub and Hoshino Coffee retail outlets in Ion mall in Singapore; taken July 2018.Singtel, StarHub and Hoshino Coffee retail outlets in Ion mall in Singapore; taken July 2018.

StarHub will be removed from Singapore’s Straits Times Index, while Dairy Farm International will be added to the index, FTSE Russell said on Thursday in a filing to SGX after the market close.

Shares of telecom StarHub have sold off sharply, shedding more than 42 percent since the beginning of the year, as it faces competition headwinds ahead of the entry of a fourth telco player into the city-state and as its mobile revenue has fallen and its pay TV business has shed subscribers amid competition from new players, such as Netflix.

New constituent Dairy Farm is a pan-Asian retail operator, with supermarkets, convenience stores and home furnishing stores. Daiwa recently highlighted the stock as one of its Asian consumer thematic picks, citing sustainable margin improvement, selective store expansion, growth in the home furnishings segment and growth in nascent markets with low retail penetration.

The STI reserve list, which is the five highest ranking non-constituents of the index by market capitalization, will be, in size order, Suntec REIT, Mapletree Commercial Trust, Keppel REIT, Mapletree Logistics Trust and Mapletree Industrial Trust, the filing said.

Reserve list stocks will replace any index constituents that become ineligible as a result of corporate actions before the next review, it said. The next quarterly review will take place in December, it said.

FTSE acts as the index administrator in partnership with Singapore Press Holdings, which publishes the Straits Times newspaper, and the Singapore Exchange, the filing said.

This article was originally published on Thursday, 6 September 2018 at 23:20 SGT; it has since been updated with details of the reserve list. 

Get Shenton Wire headlines in your inbox