iEdge Singapore Next 50 Index

[weijian]

SGX to launch index that tracks listcos beyond STI: Chee Hong Tat

[SINGAPORE] The Singapore Exchange (SGX) will be launching an index that tracks listed companies that are not constituents of the Straits Times Index (STI), as part of efforts to showcase its broader equity market, said Monetary Authority of Singapore (MAS) deputy chairman Chee Hong Tat on Friday (Sep 12).

My enthusiasm was stirred up when the announcement was made. But it quickly died down after this new "small/med cap index" was revealed. At least 50% of the weightage is made of of REITs/Trusts. Out of the top10 constituents (making up ~47% of the weightage), 8 of them are REITs/Trusts with YZJFH and ComfortDelgro completing the list. Therefore, this is more like a REIT index + little bit of everything else.

That said, this is probably also symbolic of Spore as a whole, isn't it? A place where public homes change hands for million dollars (not an outlier anymore although they are still generally constrain to choicer locations/higher floors/bigger sizes).

SGX rolls out new indices to broaden visibility of listed companies beyond STI


Complementing existing benchmarks, the iEdge Singapore Next 50 Indices are designed to raise the visibility of mid-cap companies and broaden investor participation in this increasingly active segment of the market.

Luke Lim, managing director at Phillip Securities and Securities Association of Singapore (SAS) chairman, described the new benchmarks as a bridge for investors. It helps them “move from the familiarity of established benchmarks to growing confidence in Singapore’s mid-cap companies”, he told The Business Times.

Echoing this sentiment, David Gerald, the president of Securities Investors Association (Singapore), or Sias, noted that this move sets a precedent for other index providers to follow and encourages the development of new indices that spotlight different tiers of the market.

“The move also encourages companies to do more to unlock shareholder value as their viability would be recognised,” he said.

https://www.businesstimes.com.sg/compani...beyond-sti

Full list of constituents: https://api2.sgx.com/sites/default/files...tsheet.pdf

[CY09]

Hi Weijian,

I do agree with you. The large companies in Singapore are now dotted with Trust and REITs. Even Centurion, Yangzijiang Financial, Boustead and Wee hur are boosted by either they spinning off their trust/REITs or property accomodation stories. Post spin off, it is likely more Trust/REITs will be added to this next 50 basket.

If you notice, Guocoland and Ho Bee despite being 2 and 1.5 billion in market cap is not added in the next 50. Why is this so? Because they have little trading volume + the developers has been forthcoming in saying that REIT is not in their cards yet.

The developers are geared 50-70% leveragesd. The exchange on a whole are dotted with real estate trusts and partly due to Singapore being the rare few countries which allows an external managed REIT manager

[weijian]

The developers are geared 50-70% leveragesd. The exchange on a whole are dotted with real estate trusts and partly due to Singapore being the rare few countries which allows an external managed REIT manager

Hi CY09,

Your bolded portion seems to suggest that an external REIT manager is not allowed in most other countries. That is definitely not true from a legal perspective. Personally, I think internal/external REIT manager has its pros/cons and therefore plenty of nuances based on the geography's regulations, investor preferences and the availability of expertise.

It is a fact that REITs in Western markets (US/Canada) mainly uses an internal manager model because that's how it has evolved based on investor preferences, regulation preferences etc. But the internal manager model been the default isn't because an external manager is not legally allowed in these markets.

On the contrary, many countries eg. Australia and Japan actually legally require an external REIT manager. Of course, some of them go around this problem by stapling the external REIT manager with the REIT itself (like how many S-REITs are stapled securities with a REIT + Trust, hence allowing more flexibility), making the separate REIT manager effectively an internalized entity.

[CY09]

SGX to launch index that tracks listcos beyond STI: Chee Hong Tat

[SINGAPORE] The Singapore Exchange (SGX) will be launching an index that tracks listed companies that are not constituents of the Straits Times Index (STI), as part of efforts to showcase its broader equity market, said Monetary Authority of Singapore (MAS) deputy chairman Chee Hong Tat on Friday (Sep 12).

My enthusiasm was stirred up when the announcement was made. But it quickly died down after this new "small/med cap index" was revealed. At least 50% of the weightage is made of of REITs/Trusts. Out of the top10 constituents (making up ~47% of the weightage), 8 of them are REITs/Trusts with YZJFH and ComfortDelgro completing the list. Therefore, this is more like a REIT index + little bit of everything else.

That said, this is probably also symbolic of Spore as a whole, isn't it? A place where public homes change hands for million dollars (not an outlier anymore although they are still generally constrain to choicer locations/higher floors/bigger sizes).

SGX rolls out new indices to broaden visibility of listed companies beyond STI


Complementing existing benchmarks, the iEdge Singapore Next 50 Indices are designed to raise the visibility of mid-cap companies and broaden investor participation in this increasingly active segment of the market.

Luke Lim, managing director at Phillip Securities and Securities Association of Singapore (SAS) chairman, described the new benchmarks as a bridge for investors. It helps them “move from the familiarity of established benchmarks to growing confidence in Singapore’s mid-cap companies”, he told The Business Times.

Echoing this sentiment, David Gerald, the president of Securities Investors Association (Singapore), or Sias, noted that this move sets a precedent for other index providers to follow and encourages the development of new indices that spotlight different tiers of the market.

“The move also encourages companies to do more to unlock shareholder value as their viability would be recognised,” he said.

https://www.businesstimes.com.sg/compani...beyond-sti

Full list of constituents: https://api2.sgx.com/sites/default/files...tsheet.pdf

To remain in the mid cap indices, there is a requirement that the average trading value divided by the free float market cap (daily trading velocity) has to be more than 0.08%.

As November has ended which is the last review month, 4 companies has supposedly fell below 0.8%, they are SBS transit, Banyan Tree, Pan United and BRC Asia (2% weight of the index). When i went through the daily data, many of the 50 constituents have declining trading volume in the past 02 months. If this continues, another 5 more companies are slated to drop out of mid cap index such as Yanlord, China Aviation, Cosco, Aztech, Samudera Shipping)

Possible replacements for the upcoming review are Centurion Accomodation REIT, AEM and YZJ Maritime; maybe Golden Agri but its trading velocity is only about 0.1%

Overall, I notice, the Singapore mid caps are now having declining trading value/volume month on month, the initial hype done by MAS and its magic has worn off. Alternatively, to maintain the pride, SGX may decide to lower the trading velocity which means illiquid stocks survive the cut

Even among the additional eligible stocks (reserve list), many companies have fallen to less than 0.1% (the criteria to go into the index as a new constitutent). The result is that a 100 million market cap company might even be included in this mid cap index because many 100 million - 3 billion companies do not meet the trading velocity criteria

The upcoming review is on the third week of Dec, followed by March 2026

[CY09]

https://links.sgx.com/FileOpen/20251209%...eID=869341

Im surprised for this round, SGX dropped out those who had fallen in market cap and not trading velocity. The new stocks that were added in have larger market cap and trading veolcity.

That said, its likely in the next round of March, 5 stocks in the index are primed for the fall which are SBS, Banyan Tree, Pan United, BRC Asia and Cosco. This is because their trading volume is low. I do not know who the 5 replacements are, but likely the 2 are Unitedgreen.AI and AEM

[weijian]

With 6.5bil worth of MAS EQDP in the works, I suspect that the iEdge Spore Next 50 Index could be an interesting one to monitor. iEdge is SGX's index business and I suspect it is only a matter of time that there will be an ETF for the Spore Next 50 index.

iEdge Singapore Next 50 Index 

Inclusions (Company name) 
- Haw Par Corp Ltd
- GuocoLand Ltd
- UltraGreen.ai Ltd
- Valuemax Group Ltd 

Exclusions (Company name)
- Banyan Tree Holdings Ltd 
- SBS Transit Ltd 
- Geo Energy Resources Ltd 
- COSCO SHIPPING International Singapore Co Ltd

https://links.sgx.com/1.0.0/corporate-an...a92348bf25

[weijian]

The quarterly review is in and 2 "tech stocks" that had great outperformance in the last 2 months are in.

iEdge Singapore Next 50 Index

From January to May 2026, the iEdge Singapore Next 50 Liquidity Weighted Index generated a total return of 12.3%, edging ahead of the Straits Times Index s total return of 10.8% for the same period. Technology is becoming structurally significant within the index. After this quarterly review, technology-related exposures spanning multiple RBICS[1] sectors will account for around 26.2% of total weight - up from 16.6% - led by technology names such as AEM Holdings, UMS Integration and Frencken Group; alongside the platform-based constituent iFAST Corporation.

iEdge Singapore Next 50 Index Inclusions:
AEM Holdings Ltd.
Top Glove Corporation Bhd.
UI Boustead REIT
PC Partner Group Limited

Exclusions
Singapore Post Ltd.
Digital Core REIT
Wee Hur Holdings Ltd.
China Sunsine Chemical Holdings Ltd.

https://links.sgx.com/1.0.0/corporate-an...73c4175778