SGX Launches iEdge Singapore Next 50 Indices: Unlocking Hidden Value Beyond the Straits Times Index

Key Highlights for Investors

• Singapore Exchange (SGX) Indices has launched the iEdge Singapore Next 50 Indices, which track the next tier of large and liquid mainboard companies outside the Straits Times Index (STI).
• The new indices are designed with a transparent, rules-based methodology and employ free-float, market capitalisation, and liquidity criteria to identify constituents.
• Two variants are available: one weighted by market capitalisation, and another by liquidity, offering flexibility for different investor needs.
• The indices exclude the 30 largest companies by market capitalisation, focusing on the subsequent 50 companies with significant liquidity and size.
• There is growing investor interest and participation in this segment, with institutional investors net buying S\$425 million of small- and mid-cap stocks in the first eight months of 2025.
• Daily turnover in these stocks grew 50% year-on-year to S\$163 million, largely driven by retail investor activity.
• The launch signals the rise of tailored indices capturing evolving market dynamics, potentially leading to increased product innovation and new investment vehicles.

Key Points That May Impact Share Price

• Broader Visibility and Market Participation: The new indices are expected to increase the visibility of mid-cap and liquid stocks beyond the STI, potentially attracting new institutional and retail flows.
• Growing Turnover & Liquidity: The strong uptick in trading activity and institutional buying could signal re-rating potential for companies included in these indices, impacting their share prices positively as index inclusion often leads to increased demand.
• Foundation for New Financial Products: The indices may serve as underlying benchmarks for ETFs and derivatives, attracting further capital and providing new investment avenues for both retail and institutional investors.
• SGX Focus on Inclusivity: The initiative is part of SGX Group’s broader strategy to build a more vibrant and inclusive stock market ecosystem, which could enhance the overall attractiveness of Singapore’s equity market.

In-Depth Analysis: What Investors Need to Know

The Singapore Exchange (SGX) has taken a significant step towards strengthening its equity market ecosystem with the launch of the iEdge Singapore Next 50 Indices. These indices are specifically engineered to track the next cohort of 50 large and liquid companies listed on the mainboard, excluding the dominant 30 STI constituents. The indices are set to provide much-needed visibility to dynamic mid-cap firms that are increasingly gaining investor attention.

Developed with a transparent and rules-based approach, the iEdge Singapore Next 50 Indices use a combination of free-float, market capitalisation, and liquidity screens to ensure that only sizeable and tradable companies are included. Investors can choose between a market capitalisation-weighted index or a liquidity-weighted index, catering to varying investment strategies and risk appetites.

The move comes at a time when interest in smaller and mid-cap stocks is surging. From January to August 2025, institutional investors have net purchased S\$425 million in this segment, while the average daily turnover has soared by 50% to S\$163 million. Notably, retail investors have played a pivotal role in this upswing, suggesting a broadening base of market participants and heightened activity outside the traditional blue-chip arena.

According to Ng Yao Loong, Head of Equities at SGX Group, the launch of these indices forms part of the Group’s ongoing efforts to foster a more vibrant and inclusive stock market. By shining a spotlight on the next 50 companies, SGX is enabling investors to access a wider spectrum of opportunities, while also laying the groundwork for innovative ways to track market performance beyond the STI.

The introduction of these indices is expected to catalyse the development of new financial products, such as ETFs and derivatives, that can further channel capital into Singapore’s equity market. For listed companies included in these indices, this greater visibility and potential for increased trading volumes could translate into higher valuations and improved access to capital.

SGX Indices has a strong track record of creating indices tailored to diverse investor profiles, including thematic indices tracked by ETFs (such as low carbon and REITs), underscoring its commitment to both local market depth and global thematic relevance.

For more information on the methodology, selection criteria, and a full list of constituents and sectors, investors are encouraged to visit the SGX website: https://www.sgx.com/indices

Conclusion: A Potential Catalyst for Mid-Cap Rerating

The launch of the iEdge Singapore Next 50 Indices is a strategic move with the potential to reshape investor focus and capital flows within Singapore’s stock market. By providing new benchmarks and investment vehicles for the next tier of large and liquid companies, SGX is opening the door to enhanced valuations, deeper liquidity, and broader market participation. For both current shareholders and prospective investors, this development could be a significant catalyst for future price appreciation in Singapore’s mid-cap segment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisers before making any investment decisions. The information provided is based on publicly available sources as of the date of publication and may be subject to change.

View SGX Historical chart here