Tech stocks could surpass S-Reits on iEdge Singapore Next 50 index if growth momentum keeps up: SGX

[SINGAPORE] The technology sector could soon overtake Singapore real estate investment trusts (S-Reits) as the dominant force in the iEdge Singapore Next 50 Index if its current growth momentum is sustained, an SGX Market Update reported on Wednesday (Jun 10).

The report said: “If the technology sector sustains its early-year momentum, its influence within the index could surpass S-Reits, marking a shift from income‐led exposure towards more growth and global flow‐driven sectors.”

The assessment follows the local bourse’s June review, which added four constituents and omitted four others. The changes are effective Jun 22.

The four constituents added were semiconductor test provider AEM Holdings , disposable glove manufacturer Top Glove , the recently debuted UI Boustead Reit and hardware distributor PC Partner Group .

They displaced Singapore Post , Digital Core Reit , Wee Hur Holdings and China Sunsine Chemical Holdings . These four lost their spots on the index because the incoming constituents had higher market capitalisations.

“The four inclusions reflect strong market activity and positioning across global supply chains spanning semiconductor testing, healthcare exports, industrial logistics and high‐end hardware distribution,” SGX Research said.

AEM Holdings, driven by artificial intelligence-led test demand, saw its 2026 year-to-date average daily trading value (ADT) through Jun 9 rise to S$34.7 million, up from S$4.05 million in the corresponding period in 2025.

PC Partner clocked a 35-times increase in its year-to-date ADT to S$4.6 million.

Liquidity framework favours technology

While the standard index tracks free-float market capitalisation, the iEdge Singapore Next 50 Liquidity Weighted Index (Next 50 LW) tilts individual stock weights towards actively traded counters based on six-month median daily traded value.

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Technology has emerged as the primary beneficiary of this liquidity-weighted framework.

Based on indicative weights as at May 29, the technology sector’s combined weight stood at 26.2 per cent in the Next 50 LW index, against 15.8 per cent in the standard free-float version.

Five of the seven largest individual weights in the index as of May 29 were from the technology sector: AEM Holdings, iFast Corporation , UMS Integration , Frencken Group and CSE Global .

This trend has also emerged in the Next 50 Reserve List, where three of the 10 reserve stocks – Nanofilm Technologies International , Addvalue Technologies and Aztech Global – are from the tech sector.

Weight reductions in income sectors

The expansion of technology’s footprint is occurring at the expense of defensive, income-oriented segments.

In the liquidity-weighted index, the allocation for S-Reits shrank to 29.7 per cent from 35.9 per cent in the standard index.

Similar declines took place in telecommunications, which fell from 6 to 2.9 per cent, and utilities, which dipped from 4.5 to 1.9 per cent.

In the broader mid-cap universe, overall trading activity accelerated, with the combined ADT of the index’s remaining 45 constituents rising to S$298 million for 2026 up to Jun 9; over the same period in 2025, the figure was S$121 million.