SINGAPORE (THE BUSINESS TIMES) – Frasers Logistics & Commercial Trust (FLCT) will join the FTSE Straits Times Index (STI) on April 13.
Following the latest review of the STI by FTSE Russell, FLCT will replace Jardine Strategic Holdings (JSH).
Robert Wallace, chief executive officer of the manager of FLCT, said: “We are delighted that FLCT will be included as a constituent of the STI.”
He added: “Our inclusion into the benchmark index for the Singapore stock market bears testament to the progress we have made as a listed real estate investment trust (Reit), which we trust will further elevate FLCT’s profile and visibility with global investors.”
The STI, Singapore’s main stock market benchmark, is a market capitalisation weighted index that tracks the performance of the top 30 companies listed on the Singapore Exchange (SGX).
It is jointly calculated by FTSE Russell, the index administrator; Singapore Press Holdings, which publishes The Straits Times and The Business Times; and SGX.
FLCT will join six other Reits on the STI, namely Ascendas Reit, CapitaLand Integrated Commercial Trust, Keppel DC Reit, Mapletree Commercial Trust, Mapletree Industrial Trust and Mapletree Logistics Trust.
In a research note published last month anticipating FLCT’s inclusion in the STI, CGS-CIMB said it likes FLCT for its exposure to the logistics warehouse sector, which will continue to ride on the e-commerce uptrend, as well as the trust’s visible inorganic growth potential and income resilience.
Meanwhile, Jardine Matheson Holdings had announced in March that it will simplify the parent company structure of the group by acquiring the 15 per cent of JSH that it does not own.