SINGAPORE: Funds can now track listed companies on the Singapore Exchange (SGX) more easily, thanks to two new indexes: the iEdge Singapore Next 50 Index and iEdge Singapore Next 50 Liquidity Weighted Index.
Launched yesterday, they are part of the bourse’s wider plans to boost investor demand and interest, as well as improve market liquidity.
These two indexes will complement existing benchmarks by tracking the performance of the next tier of 50 companies on the mainboard, following the 30 largest ones by market capitalisation on the Straits Times Index (STI).
The iEdge Singapore Next 50 Index will be the headline index, weighted by free float market capitalisation.
Meanwhile, the iEdge Singapore Next 50 Liquidity Weighted Index will provide another lens on market activity by allocating more weight by stocks with the highest trading activity, based on a six-month median daily traded value.
SGX said in a statement on Sept 22 that the indexes were developed using a transparent, rules-based methodology, and they incorporate free float, market capitalisation and liquidity criteria to identify companies that are both sizeable and tradable.
These companies have a minimum turnover of S$100,000 in median daily traded value and a minimum market cap of S$100mil.
The new indexes highlight the expanding appeal of a wider range of Singapore-listed companies beyond the top tier, and the companies have demonstrated healthy liquidity and rising investor participation since the start of 2025.
“This underscores the demand for tailored indices that capture evolving market dynamics and provide exposure to liquid companies gaining market prominence,” SGX said in the statement.
The new indexes were announced by Monetary Authority of Singapore deputy chairman Chee Hong Tat on Sept 12.
“Over time, we hope to see more indices emerge, covering areas such as corporate governance and sustainability – creating a virtuous circle and generating positive momentum for the entire market,” said Chee, who is also the National Development minister.
The 50 companies in these two indexes come from a wide range of sectors, including industrials, financials, energy, non-energy materials and real estate investment trusts (REITS) – which is the largest sector covered with 17 constituents.
The companies with the largest weights on both indexes are ComfortDelGro, Yangzijiang Financial Holding and Keppel Reit at 5%.
On the Liquidity Weighted Index, iFast Corporation, Singapore Post, Sheng Siong Group, CapitaLand Ascott Trust and Suntec REIT are the highest weighted at 4% to 5%.
SGX Group’s head of equities Ng Yao Loong said the new indexes are part of efforts to build a more vibrant and inclusive stock market ecosystem.
“By showcasing companies beyond the 30 largest, we are helping investors to better capitalise on the full spectrum of opportunities.” — The Straits Times/ANN
