Data Crunching The STI Index

After reading Teh Hooi Ling’s book on $how Me The Money, there was one aspect about the book that stood out. Throughout the book, there is a lot of data crunching done and I thought, why not do it myself as well? Although it is a little bit tedious, but I thought it was quite worth the while to find potential investment ideas from within the STI Index. Just a little warning, it gets a little technical at the start!

Let The Crunching Begin!


So the first step of it all would be to gather as much data as I could from the individual stock components in the STI. I was able to get close to 10 years worth of data and started working on them! It was rather intimidating at first, working with so many numbers. But I learnt that as long as you know what your end goal is, what is it that you want to find, you’ll be able to look past the overwhelming amount of data. My goal here was to find out which stocks outperformed the STI consistently.

Common Denominator


Now the next step would be to ensure that all my data begin from the same date. This would immediately eliminate quite a bit of data points because not all stocks are listed on the same date. Some have a lot of data points because they were listed many years back, while some have only been listed relatively more recently. Therefore amount of data I could get from each individual stocks differ. I overcome this issue by setting the cut-off date as far back as I can, to the stock that has the least amount of data points.

Now, indexing them all to the same starting point will immediately show me which stocks have outperformed themselves over the years AND when I plot them out on a simple chart diagram, I am able to easily spot which stock has outperformed the STI Index over the years.

Moment Of Truth!


Yup, as expected, it’s pretty nasty. I didn’t even know where those histogram lines appear when I selected 2-line charts. Not a big issue. The first thing I knew I had to do was to identify my STI line and I decided to tweak it a little to make it more obvious. I changed it from line chart to area chart, that’s what the blue area is. Anything inside the blue area represents under-performance of the STI Index.

Here Comes The Outperformers!


After filtering out everything below the STI Line, which is now represented by the bold and thick brown line at the bottom, I immediately get 8 investment ideas to research on! Here are the winners of the Data Crunch:

  1. Ascendas REIT
  2. SATS
  3. Jardine C&C
  4. UOL
  5. Comfort Delgro
  6. Thai Bev
  7. Starhub
  8. Golden Agri

Past Is Not Indicative Of Future

However please take note that past performance is not indicative of future performance! I merely data crunched to find investment ideas. A lot more work must go into these findings! We will look into these companies in time to come! So stay tuned!

Aloysius Lee

Aloysius has been investing in Singapore Equities from the age of 18 and is still madly enthusiastic about it. He strives to sharpen his edge while guiding others along the way to snowball their way to financial freedom!

One thought on “Data Crunching The STI Index

  • February 13, 2016 at 4:02 PM

    Very interesting data mining – perhaps you should also include the impact of dividends for a more accurate comparison?


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