SGX Launches Two New Indexes to Boost Investor Demand
- Business ASEAN Companies stock exchange
Global Business Magazine- 4 minutes read
Singapore Exchange (SGX) Indices on Monday announced the launch of the iEdge Singapore Next 50 Indices that track the performance of the next tier of large and liquid mainboard companies, outside of the flagship Straits Times Index (STI) benchmark.
The new indexes were first announced by Monetary Authority of Singapore (MAS) deputy chairman Chee Hong Tat on September 12.
Developed using a transparent, rules-based methodology, the iEdge Singapore Next 50 Indices incorporate free-float, market capitalisation and liquidity criteria to identify companies that are both sizeable and tradable.
To serve a broader spectrum of investor needs, the indices are available in two variants: one weighted by market capitalisation, and the other by liquidity and they are part of the bourse’s wider plans to boost investor demand and interest, SGX said.
Complementing existing benchmarks, these indices are designed to raise the visibility and broaden market participation in the next cohort of 50 companies – excluding the 30 largest companies by market capitalisation – as investor interest in this segment grows.
The iEdge Singapore Next 50 Indices highlight the expanding appeal of a wider range of Singapore-listed companies beyond the top tier. The index constituents have demonstrated healthy liquidity and rising investor participation since the start of the year. This underscores the demand for tailored indices that capture evolving market dynamics and provide exposure to liquid companies gaining market prominence.
For the first eight months of 2025, institutional investors net purchased $330.92 million of small- and mid-cap stocks, as daily turnover grew 50% over the same period to $126.92 million, with retail investors driving significantly higher activity. This positive momentum is expected to give rise to the development of new indices that highlight different segments of Singapore’s stock market.
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 also the highest weighted at 4% to 5%.
SGX also said that both indexes will be reviewed and rebalanced every quarter in March, June, September and December, using data from the last index business day of February, May, August and November, respectively.
Building Vibrant System
Head of Equities at SGX Group Ng Yao Loong said that the iEdge Singapore Next 50 Indices initiative was part of their 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 in Singapore’s stock market. It also serves as a starting point for market participants to explore innovative ways of tracking the performance of different segments of the Singapore market,” Loong added.
The iEdge Singapore Next 50 Indices build upon SGX Indices’ decade-long track record in developing a global suite of index series tailored to different investor profiles. This includes Singapore-focused thematic indices tracked by ETFs, such as low carbon and REITs, reinforcing SGX’s commitment to both local market depth and global thematic relevance.
