SGX’s New Indices Elevate Singapore’s Mid-Cap Market

Singapore’s stock market is poised for greater dynamism with the launch of the iEdge Singapore Next 50 Indices on 22 September 2025. Aimed at showcasing the next tier of large and liquid mainboard companies beyond the Straits Times Index (STI), these indices mark a strategic step by the Singapore Exchange (SGX) to foster a more inclusive and vibrant capital market. By offering investors access to a diverse range of mid-cap firms, SGX is unlocking new opportunities for portfolio diversification and long-term growth.

The iEdge Singapore Next 50 Indices, available in market capitalisation and liquidity-weighted variants, feature a diverse mix of companies across sectors such as real estate investment trusts, industrials, financials, and energy. Notable constituents include ComfortDelGro, Centurion, Wee Hur, Digital Core Reit, and Nanofilm Technologies. “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,” said Ng Yao Loong, SGX’s head of equities. This initiative responds to growing investor demand for exposure to mid-cap firms, which often offer higher growth potential compared to their larger counterparts. The indices’ transparent, rules-based methodology, requiring minimum thresholds like S$100,000 daily turnover and S$100 million market capitalisation, ensures the inclusion of actively traded and sizeable companies.

The new indices have already demonstrated impressive performance, delivering a year-to-date total return of 24.1% for the iEdge Singapore Next 50 Index and 24.5% for the liquidity-weighted variant, outperforming the STI’s 18.6% return over the same period. This robust performance reflects rising investor interest, with 44 of the 50 constituents showing turnover improvements in the September 2025 rebalance, up from just over half in December 2024. “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,” noted David Gerald, president of the Securities Investors Association (Singapore). The indices are expected to catalyse index-linked products like exchange-traded funds and futures, enhancing liquidity and attracting both institutional and retail investors.

SGX’s initiative aligns with the Monetary Authority of Singapore’s Equity Market Development Programme, aiming to strengthen the city-state’s position as a global financial hub. By spotlighting mid-cap companies, the indices pave the way for firms to eventually graduate into the STI, boosting analyst coverage and institutional capital. Malcolm Koo, CEO of CGS International Securities Singapore, highlighted that “a robust mid-cap benchmark can catalyse funding, support initial public offering momentum and generate spillover interest into smaller Catalist-listed companies.” The surge in investor activity—evidenced by S$425 million in net purchases of small and mid-cap stocks by institutional investors in the first eight months of 2025 and a 50% increase in average daily turnover to S$163 million—underscores the growing confidence in this market segment. Globally, similar benchmarks like the UK’s FTSE 250 and the US’s Russell 2000 have successfully channelled capital to mid-cap firms, suggesting Singapore could replicate this success. SEO Description: SGX’s iEdge Singapore Next 50 Indices, launched in September 2025, spotlight mid-cap firms, boosting diversification and liquidity with a 24.1% year-to-date return, outpacing the STI.