t was announced that the listing of Yangzijiang Shipbuilding’s (YZJ) Yangzijiang Financial Holding (YZJFH) will take place on April 28. YZJFH will be added to the Straits Times Index (STI), FTSE ST Mid Cap Index, FTSE ST China Index and FTSE ST All-Share Index, YZJ said in a Singapore Exchange filing.
This is not good for ComfortDelgro as it is the smallest component of the STI with a market capitalisation of $3.27 billion as at April 21. The index component stocks will be ranked according to full market capitalisation on April 28 with the smallest constituent removed from the index effective May 5. The next smallest company by market capitalisation is Keppel DC REIT with a market cap $3.6 billion.
“In essence, unless YZJFH or YZJ Shipbuilding trades below ComfortDelgro’s market cap on April 28, ComfortDelgro will be subject to removal from the STI from May 5,” says a DBS Group Research note.