JT

22 Mar 2020

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Is it possible for STI to hit zero?

As stated in the question, is it possible? I have heard from friends where government will pump in money to stabilise the economy. How true is that? Could someone elaborate?

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Leo

22 Mar 2020

When the STI index hits zero, it will be a true apocalypse, and by then, hitting zero shouldn't matter to you as you would probably be worried about other things.

The Straits Times Index is a list of 30 companies, if one of the company doesn't do so well, it will be removed from the list and replaced by the next better candidate.

For STI to reach zero, it would be all the companies that are listed are worthless. For that to happen, literally the entire country will have to collapsed into wasteland aka apocalypse.

Even in wars, companies are not worth zero.

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Yang Teng

21 Mar 2020

That would mean that the price of the 30 companies in STI is $0 which is not possible. If a company losses significant valuation, it can be replaced by another company as a constituent of the STI.

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