In poker, the “blue chip” is considered the chip that has the highest value. In stock market terms, this refers to nationally recognised, well-established, and financially sound companies.
They are typically the largest listed companies in Singapore by market capitalisation, and a synonym for STI ETF.
Blue chip are known to be relatively stable due to their strong balance sheet and dominant market position; making them difficult to fail and capable of riding out financial crisis during bad market cycles.
There is a reason why so many Singaporean prefer to invest blue chip stocks, mainly because of its perceived certainty, which means less risk, and they are often common household names like M1 and SPH, which most Singaporean investors can relate to.
Blue chips are also often backed up by large institutional investors which makes their prices less susceptible to speculation.
Below are the top 10 largest