iEdge Next 50 Liquidity Weighted Index outperforms STI on tech strength

[SINGAPORE] The iEdge Singapore Next 50 Liquidity Weighted Index outpaced the Straits Times Index (STI) in year-to-date total returns, data from an SGX market update on Thursday (Apr 16) showed. 

As at the morning trading session on Thursday, the index recorded a 9.7 per cent year-to-date total return, compared with the STI’s 8.9 per cent.

The iEdge Singapore Next 50 Liquidity Weighted Index tracks the performance of the 50 stocks ranked just below the STI. It tracks the same basket of stocks as the iEdge Singapore Next 50 Index, but it is weighted by liquidity instead of market capitalisation. 

The index’s constituents saw an average daily turnover (ADT) of S$275 million in the year through Apr 15, a 43 per cent increase from 2025 levels, SGX said. Median price‑to‑book has also expanded from 1.05 times a year ago to 1.23 times at present.

Technology driving returns

Technology is a dominant force within the index, with four key stocks accounting for nearly one-fifth of the total weight. 

This sector has emerged as the second-largest exposure, trailing only Reits.

Real estate assets still anchor the index, but the marginal driver has shifted, SGX said. “Reits remain the largest sector by weight, providing balance‑sheet stability and cash‑flow backing, while technology and digital infrastructure exposures increasingly shape liquidity growth.”

SGX noted that the liquidity-weighted index reflects how capital is engaging with stocks rather than how large they are on paper.

SEE ALSO

“Where a stock shows sustained turnover, strong traded velocity and repeat participation, its index presence rises accordingly,” the report read. “The liquidity-weighted Next 50 tends to surface where attention is concentrated, rather than where capitalisation alone would suggest it should be.”

The outperformance of the index is hence largely attributed to these tech entities, which have benefited from the artificial intelligence (AI)-driven semiconductor cycle and expanded digital infrastructure needs.

These four constituents have generated an average 43 per cent total return since 2025, alongside a 2.5-time increase in ADT compared with 2025 levels.

“The near‑term outlook for Singapore’s digital and technology‑enabled economy remains structurally supported, albeit with tighter execution thresholds,” SGX said. 

“Activity is therefore concentrating in areas linked to data centre infrastructure, automation, AI‑enabled manufacturing, digital services, and enterprise platforms where scale, reliability, and cross‑border connectivity matter,” the report added. 

“The implication is not slower digital growth, but a shift towards more capital‑intensive, execution‑led expansion that favours economies able to combine technology, financing, and operational coordination.”

Adjacent to the technology segment, NetLink NBN Trust , NTT DC Reit , Digital Core Reit , and StarHub together represent a further 6 per cent of the index by weight, SGX noted.