Global Logistic Properties (MC0.SG) is off 0.5% at $1.95, in line with the weak broad market and not seeing much boost from news it will be included in the benchmark STI from March 21, replacing SMRT (S53.SG), which is down 0.5% at $1.92.
SMRT will join the FTSE ST Mid-Cap Index. Yangzijiang Shipbuilding (BS6.SG), Keppel Land (K17.SG), Cosco Corp. (F83.SG), CapitaCommercial Trust (C61U.SG) and Ascendas REIT (A17U.SG) will comprise the STI reserve list — they are the five highest ranking non-constituents of the STI in order of market cap.
Nomura estimates GLP will have a 1.28% weighting in the index, and using STI-tracking ETFs streetTRACKS Straits Times and DBS Singapore STI (which it says have a total passive fund size of US$199.9 million), the house estimates a US$2.56 million ($3.26 million) buying impact on GLP, and says the selling impact on SMRT will be around US$1.1 million.
DMG, which rates SMRT at Neutral, says “this review may lead to short-term downside price pressure for SMRT.”
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