30 Stocks of the Singapore Straits Times Index 2011

Here are the 30 Component Stocks of the Singapore Straits Times Index 2011.
City Developments
Fraser and Neave
Keppel Corp
Neptune Orient Lines
CapitaMalls Asia
Singapore Airlines
Singapore Press Holdings
United Overseas Bank
Oversea-Chinese Banking
DBS Group Holdings
SembCorp Industries
Jardine Cycle & Carriage
Sembcorp Marine
Singapore Telecom
Jardine Matheson
Jardine Strategic
Hongkong Land Holdings
Singapore Technologies Engineering
Capitaland
Golden Agri-Resources
Sia Engineering
SMRT Corp
Wilmar International Limited
Singapore Exchange
Noble Group
ComfortDelgro Corp
Genting Singapore
CapitaMall Trust
StarHub
Olam International

Compared to the FTSE Bursa Malaysia CI, the banks consists just 3 which is all of the local banks. And seem more balance with several transport firms (SIA of course, Comfort, SMRT, Neptune) and commodities (Olam, Noble) plantations (Wilmar, Golden Agri).

Two interesting component stocks at least to me, is Jardine Matheson and Jardine Strategic.

So the question is : how do we make a stock index, or should we be making and mimicking the well-known STI index?

Every wise investor should have a strategy to buy and hold several of the stocks above, and ability to move sideways within a sector. Say for instance, now that Wilmar seems to have hit several highs and questionable situation with their new divergence into property development (from pure palm oil sector), a strategic investor that wishes for growth and strength in palm oil sector can still remain invested by selling their Wilmar shares, and buying instead Golden Agri.

Likewise with telco. One must have the capacity for making shifts within the sector. Sell Singtel, buy Starhub if the direction to expand overseas is taking a slower growth now after years of double digit growth in Australia and Indonesia.

Will write more on each component stock in separate articles.

Starhub hitting target $2.70 with vigour MACD over Signal Line

The MACD line is significantly over the Signal line for Starhub. Reaching closer to the target price of $2.70 before the 4th Quarter of 2010.

See this chart above. Within 1 year, the stock movement has gone progressively higher and the upbeat is strong. The target price would have been achieved earlier if not for that fierce correction.

Essentially Starhub has grown 35% (2.70 div average 2.00 price a year ago). And have been consistently paying high quarterly dividends. An impressive record and always a buy and hold recommendation for this super stock.

Starhub Website - http://www.starhub.com.sg

Starhub gaining with fruitful dividends

Starhub has been steadily gaining ground to $2.53. Besides the guaranteed harvest of the bountiful dividend fruits, their business strategy is sound. M1 hasn't been performing lately. While Singtel ($3.15) did caught up with some recent gains. Perhaps when Starhub and Singtel has been fully valued, then there could be new movements for M1. All in all, an overweight for the telco businesses.

Starhub holding stronger with renewed strength

Another of my picks is Starhub. Those who followed my writings from SingaporeStocks.com.sg will know I have bought in when it was $1.70. Through about 9 months, I have ridden the wave twice, and now holding on with fuller confidence - $2.51 - today. Plus I have enjoyed the quarterly dividend that Starhub always deliver. Clearly the buzz surrounding Nucleus Connect and all these highspeed internet for business buildings will propel Starhub further.

Telco sector wise, Singtel too is heading stronger just gentler from $2.95 to $3.10. And hope for a $3.50 target price. M1 is holding its ground well. Target price $2.35