They cover the main sectors of the SES, using its reclassified sectoral groupings that will also come into effect on 31 August. The full list of index stocks is given in Appendix 1 . A secondary aim is for the STI to continue to reflect the performance of the Singapore economy, in particular the earnings of listed companies.
All stocks listed on the SES qualify for inclusion in the index.
The new index captures 78.04 per cent of the SES average daily traded value for the 12-month period from August 97 to July 98. A comparison of sector shares is given in Appendix 3 . Within each sector, stocks with a larger market capitalisation are preferred over those with small market capitalisation. The 55 index stocks account for 61.19 per cent of the total SES market capitalisation. In a price-weighted index like the STII, the component stocks are weighted only by their price against the aggregate price of the component stocks.